FBI investigating companies at heart of meltdown

WASHINGTON: The FBI is investigating four major U.S. financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration, The Associated Press has learned.

Two law enforcement officials said Tuesday the FBI is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, and insurer American International Group Inc. Additionally, a senior law enforcement official said Lehman Brothers Holdings Inc. also is under investigation.

The inquiries will focus on the financial institutions and the individuals that ran them, the senior law enforcement official said.

Read moreFBI investigating companies at heart of meltdown

China Shuns Paulson’s Free Market Push as Meltdown Burns U.S.

“An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention,” Paulson said.

Contemplate that for a moment.
Now add this to your contemplation:

Section 8 of the proposed legislation says it all:
“Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.”
Right; “non-reviewable” supremacy.

Would you trust Mr. Paulson that much???

There are only two possibilities left:
1. Mr. Paulson does not have the foggiest idea what he is talking about.
2. Mr. Paulson is a puppet of the elite and all of this is a New World (Market) Order conspiracy, which will lead to the the destruction of the Dollar, the destruction of the middle class and the bankruptcy of the US.
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Henry Paulson, secretary of the U.S. Treasury, gives a speech on Chinese financial markets at the Shanghai Futures Exchange in Shanghai on March 8, 2007. Photographer: Qilai Shen/Bloomberg News

Sept. 24 (Bloomberg) — Eighteen months ago, U.S. Treasury Secretary Henry Paulson told an audience at the Shanghai Futures Exchange that China risked trillions of dollars in lost economic potential unless it freed up its capital markets.

“An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention,” Paulson said.

That advice rings hollow in China as Paulson plans a $700 billion rescue for U.S. financial institutions and the Securities and Exchange Commission bans short sales of insurers, banks and securities firms. Regulators in the fastest-growing major economy say they may ditch plans to introduce derivatives, and some company bosses are rethinking U.S. business models.

“The U.S. financial system was regarded as a model, and we tried our best to copy whatever we could,” said Yu Yongding, a former adviser to China’s central bank. “Suddenly we find our teacher is not that excellent, so the next time when we’re designing our financial system we will use our own mind more.”

The recent moves by Paulson, the former chief executive officer of Goldman Sachs Group Inc., contradict what the U.S. told Asian governments over the past decade. Thailand, South Korea and Indonesia were urged to let unviable banks fail during the 1997-98 Asian financial crisis.

Read moreChina Shuns Paulson’s Free Market Push as Meltdown Burns U.S.

California: Parents do not have a constitutional right to homeschool their children

Homeschooling Banned in California as State Turns Parents Into Criminals for Teaching Their Own Children

(NaturalNews) A California appeals court has ruled that homeschooling of children is illegal unless their parents have teaching credentials from the state.

“California is now on the path to being the only state to deny the vast majority of homeschooling parents their fundamental right to teach their own children at home,” said Michael Smith, president of the Home School Legal Defense Association.

The court overturned a lower court’s finding that homeschooling did not constitute a violation of child welfare laws.

“California courts have held that … parents do not have a constitutional right to homeschool their children,” Justice H. Walter Croskey said.

Read moreCalifornia: Parents do not have a constitutional right to homeschool their children

$13 Billion in Iraq Aid Wasted Or Stolen, Ex-Investigator Says


Salam Adhoob, former investigator for Iraq’s Commission on Public Integrity, at the Democratic Policy Committee hearing on waste and fraud in Iraq. (By Susan Walsh — Associated Press)

A former Iraqi official estimated yesterday that more than $13 billion meant for reconstruction projects in Iraq was wasted or stolen through elaborate fraud schemes.

Salam Adhoob, a former chief investigator for Iraq’s Commission on Public Integrity, told the Senate Democratic Policy Committee, an arm of the Democratic caucus, that an Iraqi auditing bureau “could not properly account for” the money.

While many of the projects audited “were not needed — and many were never built,” he said, “this very real fact remains: Billions of American dollars that paid for these projects are now gone.”

He said a report that went to Iraqi Prime Minister Nouri al-Maliki and other top Iraqi officials was never published because “nobody cares” about investigating such cases. Many investigators, he said, feared for their safety because 32 of his co-workers have been murdered.

Read more$13 Billion in Iraq Aid Wasted Or Stolen, Ex-Investigator Says

Ron Paul: I’m supporting Chuck Baldwin, the Constitution Party candidate

A New Alliance – By Dr. Ron Paul

The press conference at the National Press Club had a precise purpose. It was to expose, to as many people as possible, the gross deception of our presidential election process. It is controlled by the powerful elite to make sure that neither candidate of the two major parties will challenge the status quo. There is no real choice between the two major parties and their nominees, only the rhetoric varies. The amazingly long campaign is designed to make sure the real issues are ignored. The quotes I used at the press conference from insider Carroll Quigley and the League of Women voters strongly support this contention.

Calling together candidates from the liberal, conservative, libertarian and progressive constituencies, who are all opposed to this rigged process, was designed to alert the American people to the uselessness of continuing to support a process that a claims that one’s only choice is to choose the lesser of two evils and reject a principle vote that might challenge the status quo as a wasted vote.

Read moreRon Paul: I’m supporting Chuck Baldwin, the Constitution Party candidate

Democrats and Republicans alike sceptical of Bush bailout plan


Federal Reserve chairman Ben Bernanke folds his hands while testifying with US Treasury secretary Henry Paulson before the Senate banking committee on Tuesday. Photograph: Charles Dharapak/AP

The proposed $700bn bailout of US financial markets faced harsh criticism in Congress today, with liberals and conservatives both sceptical that granting the Bush administration power to buy up risky mortgages would avert further economic crisis.

Yet despite the wariness from the Senate banking committee, where Henry Paulson and Ben Bernanke appeared today, the financial rescue seems poised to win approval by next week at the latest.

“This is not something I wanted to ask for,” the US treasury secretary said, assuring senators that “I feel your frustrations” and “I’m angry” at the prospect of Wall Street firms getting saved by the government.

But Paulson and Bernanke did ask for broad latitude to decide which toxic assets would win a purchase by the government. Senators of both parties did not attempt to hide their anger at the request, citing the Bush administration’s previous assurances of market stability.

“We have been given no credible assurances that this plan will work,” Richard Shelby, the senior Republican on the banking panel, said. “Congress does not have time to determine if there are better alternatives.”

The committee’s Democratic chairman, Chris Dodd, questioned Paulson’s request for immunity from any legal or government review of his actions during the bailout process.

“After reading this proposal, I can only conclude that it is not just our economy that is at risk,” Dodd told the treasury secretary, “but our constitution as well.”

Read moreDemocrats and Republicans alike sceptical of Bush bailout plan

Ron Paul: Bailouts will lead to rough economic ride

By Ron Paul
Special to CNN


Rep. Ron Paul says the government’s solution to the crisis is the same as the cause of it — too much government.


(CNN)Many Americans today are asking themselves how the economy got to be in such a bad spot.

For years they thought the economy was booming, growth was up, job numbers and productivity were increasing. Yet now we find ourselves in what is shaping up to be one of the most severe economic downturns since the Great Depression.

Unfortunately, the government’s preferred solution to the crisis is the very thing that got us into this mess in the first place: government intervention.

Read moreRon Paul: Bailouts will lead to rough economic ride

Fifth Grader Suspended For Wearing Anti-Obama Shirt

This child just forgot to add Bush, Cheney, McCain, Clinton, Paulson etc.

The other side of the shirt should read: “Ron Paul, Freedom’s Best Friend.”
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An 11-year-old boy in Colorado was suspended from school after he refused to take off a shirt that read, “Obama is a terrorist’s best friend.” His father says that the school is violating his son’s First Amendment rights.

Daxx Dalton, a fifth grader at Aurora Frontier K-8 School in Aurora, Colo., wore the homemade shirt on a day when students were asked to show their patriotism by wearing red, white and blue, according to MyFOXColorado.com.

When he was given the choice of turning the shirt inside out or being suspended, Dalton chose suspension.

“They’re taking away my right of freedom of speech,” he said. “If I have the right to wear this shirt I’m going to use it. And if the only way to use it is get suspended, then I’m going to get suspended.”

Read moreFifth Grader Suspended For Wearing Anti-Obama Shirt

Mushroom Clouds Over Wall Street

By MIKE WHITNEY

“One bank to rule them all;
One bank to bind them…”

These are dark times. While you were sleeping the cockroaches were busy about their work, rummaging through the US Constitution, and putting the finishing touches on a scheme to assert absolute power over the nation’s financial markets and the country’s economic future. Industry representative Henry Paulson has submitted legislation to Congress that will finally end the pretense that Bush controls anything more than reading the lines from a 4′ by 6′ teleprompter situated just inches from his lifeless pupils. Paulson is in charge now, and the coronation is set for sometime early next week. He rose to power in a stealthily-executed Banksters’ Coup in which he, and his coterie of dodgy friends, declared martial law on the US economy while elevating himself to supreme leader.

“All Hail Caesar!” The days of the republic are over.

Section 8 of the proposed legislation says it all:

“Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.”

Right; “non-reviewable” supremacy.

Read moreMushroom Clouds Over Wall Street

Goldman Sachs and Morgan Stanley have been put under Federal control


Morgan Stanley headquarters in New York

Investment banks Goldman Sachs and Morgan Stanley have been put under Federal control as part of a package aimed at rescuing the US finance system.

The move not only puts the two financial services giants under the direct supervision of bank regulators but also gives the Fed the power to force the banks to raise additional capital.

The US administration wants to prevent the collapse of two of Wall Street’s remaining investment banks after the fall of Lehman Brothers and the government-funded bailouts of Bear Stearns, Merrill Lynch and global insurer AIG.

Read moreGoldman Sachs and Morgan Stanley have been put under Federal control