Feeding Frenzy by the Government, Lenders, Seven Bankers, and Definitely the Borrowers …

and by People Like You Who Let It Happen and Were Suckered Into Believing It Was Good For You, Your Family, and The Nation-Shame on Your Stupidity

Good thing that there are many things in the media and on cable television to distract our citizens from realizing and doing something as our economy slowly slips down the drain to the Haves, domestic and foreign.

In explaining the rationale for all things that go wrong when greed overcomes growth, someone or other said that it's the economy, stupid; or it's the stupid economy; or it's the stupidity of the economy; or it's the stupidity of how we mastered the economy-or, you can go on and on. We didn't actually create the failure-we had endearing friends in the financial community to set us up-we trusted them and relied on their expertise. We really didn't understand that the trust was never there from our trustees-there was only greed. How many borrowers read or even understood what they were signing?

So how did the government handle it when Bear Stearns looked as though it was going into bankruptcy? They used the only approach a government in doubt was familiar with-just feed the greed. The government immediately made $30 billion of taxpayer money available to enhance the credit worthiness of Bear and forced Bear into a solution of a sellout of the company to JP Morgan for $2.00 [that's two dollars] a share-our government took the role of the highwayman taking taxpayer money.

A short period before, Bear's stock had sold for over $100.00, and then $60.00, then $30.00, and now $2.00 a share. The investors who had materially benefited from Bear's mortgage business, all of a sudden, together with Bear's employees, found out for themselves what the pain meant to their mortgage borrowers in foreclosure. JP then rethought the deal and, with their hearts showing, raised the share price to $10.00. Bear's building alone was almost worth it. They did the due diligence that was never afforded to the borrowers.

Interesting that on the same day newspapers reported that U.S. credit had been extended to Bear, its chairman, James E. Cayne, was able to purchase a couple of condominium units in New York's Plaza Hotel for $28 million cash-luckily without having to get a mortgage from Bear. If he had needed to get a mortgage, he would probably have had to tap into the $30 billion.

When JP Morgan raised the offering price of Bear to $10, luckily Cayne was able to sell 5.66 million Bear shares at $10.84 per share for a bargain return of a mere $61.3 million. It just goes to show how lucky his timing was-he may even have the benefit of a capital tax loss for this year to minimize the taxes he may have to pay.

Now other banks and financial firms are lining up to get a piece of the taxpayer credit support, while the mortgage borrowers will continue to have the opportunity of getting the benefit of foreclosure and bankruptcy proceedings, all at their own expense.

To add to the show, the public has been able to put its mind at ease by reading about gubernatorial sex escapades at $3 to $6 thousand an hour [that's two or three mortgage payments].

Or they could let themselves be intrigued by the media and repetitive cable programs which constantly evaluate and repeat the political primaries and ignore the precipitous economy, or that with the American dollar below the Canadian dollar, buyers from all over the globe were buying out goods, land, and anything that looked like an American bargain.

The economic and political geniuses pontificated daily with opinions on all sorts of solutions to the economy from giving $30 billion plus to the borrowers to giving them nothing-you probably can be assured that the nothing solution is what will be the bottom line from the Congress or federal government, unless you who still have something left stand up and demand a resolution other than selling the country to Dubai.

Now that we all can be classified as suckers, we are now totally enmeshed in the process which has become a feeding frenzy without a defined solution. Basically all of the solutions will be reductions in social security benefits, veterans' benefits, education and you name it because they will name it for you, and you can be assured that you will be on the short end of the solution-so, you might as well do your mea culpa now.