Saturday, February 7, 2009

Taking Worthless Securites from Banks and Putting Them on the Backs of American Workers!

"...moving that heavy load of dubious and worthless paper --out of the banks and putting it on the back of American labor.

That is what the Reconstruction Finance Corporation is doing now. They talk about loans to banks... but they say very little about that other business of theirs which consists in relieving the swindlers who promoted investment trusts in this country and dumped worthless foreign securities into them and then resold that mess of pottage to American investors under cover of their own corporate titles.

The Reconstruction Finance Corporation is taking over those worthless securities from those investment trusts with United States Treasury money at the expense of the American taxpayer and the wage earner."

These excerpts are from Congressional testimony by Congressman Louis T. McFadden during the the First Great Depression. Has sort of a familiar ring to it, doesn't it? Make certain substitutions, such as mortgage derivatives instead of "investment trusts, " and mortgage securities for "foreign securities" and you realize that this has happened before!

The Federal Reserve Bank was neck deep in producing the First Great Depression and it and its minions are equally involved in this evolving, 2nd Great Depression! Substitute the Reconstruction Finance Corporation for the "Bad Bank" being dredged up by Wall st and you will see they want to do the same thing this time that they did last.

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