The Jews’ War On Humanity
Part 5 – The 2008 US Gentile Housing Crisis (2 of 4)
The Aftermath:
Individuals and Families
Businesses
Investors
The Investment Banks
International
The Beneficiaries
The Vultures
The Bailouts
Let’s Have a Financial Crisis
Individuals and Families
This immense fraud resulted in one of the largest transfers of wealth in modern history. The losses for the American middle and lower classes were catastrophic and occurred across multiple fronts: home equity, retirement savings, and income. But the 2008 crisis was not a period of universal loss. While it is possible to quantify the staggering losses suffered by the American public, it is also possible to identify the primary beneficiaries. It was a period where financial wealth was destroyed for the many and consolidated for the few. Those who benefited were the top 1%, or the top 1/10th of 1%. These were the most wealthy, consisting of senior executives and traders at the same financial institutions that enacted this fraud, the partners at private equity and hedge funds, those who bought the foreclosed homes, and the ultra-wealthy who had the cash to invest in distressed assets at the bottom of the market.
The mechanism was clear: Trillions of dollars in housing and retirement wealth were wiped out from the balance sheets of ordinary Americans. But this value did not simply vanish; the bulk of it was captured through foreclosures, fire-sale purchases, and financial market maneuvers by a small and powerful group. The aftermath proved the reality that, in all these schemes concocted by the Khazar Jews, the risks and losses are all socialised (borne by the public), while the gains are all privatised in the hands of a few.
The median US household lost about 30% of its net worth between 2007 and 2009. For the average family, this wiped out nearly two decades of wealth accumulation. Retirements were delayed, college funds emptied, and household financial security was destroyed. American households lost about $10 trillion in home equity and real estate values. The median sales price of existing homes fell from a peak of $257,400 in 2005 to a trough of $165,400 in 2011. Over 10 million Americans lost their homes to foreclosure. Millions more were “underwater,” owing more on their mortgage than their home was worth.
In terms of retirement and investment savings, the S&P 500 index fell nearly 60% from its 2007 peak to its 2009 trough. The 401(k) and IRA pension accounts, which millions relied on for retirement, lost nearly $3 trillion in value. Millions of individuals were forced to either delay retirement or come out of retirement and try to find a job to survive. In terms of income and employment, the U.S. lost nearly 10 million jobs, and the unemployment rate doubled to 10%. The median household income fell by 10% between 1999 and 2012, a decline that took years to recover from. There was widespread financial desperation, increased poverty, and long-term career damage for those laid off. There were many reports that about between 25% and 35% of the US population were suddenly living “paycheck to paycheck”. Many reports stated that a full 50% of Americans descended from the Middle Class to the Lower Class, a plunge which was considered unrecoverable for nearly all of them.
Why would the housing crash affect the entire US population? The NINJA borrowers would have defaulted and lost their homes, but all the people who already owned a home at the time, should have been unaffected. Housing prices did plummet 30% to 50% in most states, so many homeowners would have discovered they were underwater. But how would this have affected those who didn’t participate in the securities scam, and why would the collapse have affected ‘normal’ homeowners? This is actually a crucial question that gets to the heart of why the 2008 crisis was a systemic financial crisis and not just a housing market correction. I will try to explain.
The housing crash wasn’t contained but spread through multiple channels that destroyed consumer confidence, paralysed business activity, and forced widespread layoffs. The securitisation of all those millions of mortgages made every homeowner (and everyone else) vulnerable after the crash. In particular, the credit freeze affected employment far beyond the housing sector. There were three main transmission channels for the devastation to spread. (1) The direct wealth effect from house prices plummeting; (2) The indirect employment effect from the credit freeze, and (3) the psychological impact on consumer behavior. The combination of these explains why “normal” homeowners couldn’t escape the fallout. The damage radiated out from the housing market through those several powerful channels, affecting nearly everyone, even those who owned their homes outright. The problem wasn’t just that individual homeowners were underwater; it was that the entire economy was built on the value of those homes. When that foundation crumbled, the whole structure reverberated. Keep in mind that house prices in the US had doubled and even tripled in the prior decade, so the bubble was huge and that artificial “wealth” was supporting the economy that was still reeling from the dot-com bubble.
The first problem was what is termed the “Wealth Effect”: (The “ATM” is Closed). For decades, rising home values made Americans feel wealthier. Seeing their net worth increase on paper made people feel confident and willing to spend more freely. They borrowed against this perceived wealth to fuel their spending. People used their homes like an ATM, the rising equity being withdrawn in increased mortgages to fund renovations, holidays, new cars and education costs. But when the crisis hit, home values plummeted by 30-50%, wiping out trillions of dollars in household wealth almost overnight. The “ATM” was suddenly out of money; people could no longer borrow against their homes. Everyone suddenly felt much poorer, even if they still had a job, and most households drastically cut back on all non-essential spending. This massive drop in consumer spending crippled businesses across all sectors.
Another factor was the collapse of retirement savings. For so many Americans who were saving for retirement, the crisis delivered a second devastating blow. A high percentage of both corporate and individual retirement savings in the US were in the stock markets which crashed at the same time for all the above reasons. The S&P 500 lost nearly 60% of its value, and retirement plans for many tens of millions of Americans were devastated. This further destroyed wealth and confidence, affecting people who thought their retirement savings were separate from the housing market.
Contrary to all the media hype and the ignorant nonsense from Donald Trump, the US economy has not really improved since 2008, and at least 25% of Americans are still (in late 2025) living paycheck-to-paycheck. The total collapse of the Jews’ financial escapade caused an avalanche of home foreclosures that left large sections of once-prosperous suburban neighborhoods vacant and in disrepair. According to the Brookings Institution, the suburbs also saw a sharp rise in poverty, with roughly one-third of the nation’s population living below the poverty line. Besides putting people in the position of having to find somewhere else to live, foreclosures almost always eliminate the prospects of a comfortable retirement because a home often represents a family’s most important asset. To make matters worse, if they could be worse, countless millions of Americans found themselves underwater with respect to their homes, where the existing mortgage was now significantly greater than the value of their house. In this situation, many chose to simply walk away from the mortgage and the house, seeing little point in making payments on a $400,000 mortgage on a $300,000 house.
Businesses
The immediate effect of the housing crash was a credit freeze: This was the most direct and dangerous transmission channel from Wall Street to Main Street. The toxic mortgage securities were held by banks and financial institutions worldwide. When they became impossible to value, and many proved nearly worthless, it triggered a panic. Banks lend enormous sums of money (trillions of dollars) to each other on a daily short-term basis but, when everything collapsed, the banks stopped trusting each other because no one knew who was holding all the toxic and worthless securities. The banks stopped lending to each other literally overnight. And, if banks won’t lend to each other, they certainly won’t lend to you or to your business.
Thus, credit, which is the lifeblood of the modern economy, froze solid. Small businesses could not get loans for expansion, but also not even to purchase inventory nor to meet their payrolls. This forced them to cut hours, lay off staff, and freeze hiring. Many were forced to close simply due to this. Large corporations suddenly experienced extreme difficulty in accessing short-term funding (usually commercial paper) to manage their daily operations. This led to massive layoffs to preserve cash. Both General Motors and Stellantis went bankrupt from this effect. Individuals suddenly could not get car loans, student loans, or credit cards. Even people with excellent credit found their credit lines reduced or eliminated.
The combination of all this created a vicious, self-reinforcing downward spiral. The first noticeable result was that consumer spending plummeted. This was critical, because the US economy is a structural disaster, perversely depending on consumer spending for 75% of its life. When businesses see their revenue plunging, and are unable to borrow for current needs, they are forced to lay off workers to survive. The newly-unemployed have no choice but to slash their spending even more, causing business revenues to fall even further, leading to more layoffs. This is why the unemployment rate doubled almost immediately from 5% to 10%. It wasn’t just construction and mortgage brokers who lost their jobs; it was retail workers, factory workers, restaurant staff, and white-collar professionals. Statistics showed that almost overnight, between 25% and 30% of all Americans were living paycheck-to-paycheck, reflecting the widespread loss of income and economic security.
This was why the housing crash was not an isolated event. It was the first domino that knocked over all the others. When Goldman’s mortgage securities were proven toxic, the banking system froze, credit disappeared, businesses couldn’t borrow or sell their products, there were mass layoffs, consumer spending plummeted, resulting in business failures and layoffs. Then the stock markets crashed, wiping out a large part of everyone’s life savings and making retirement impossible for many. Even responsible homeowners with a fixed mortgage and excellent credit, were powerfully affected through one or more of these channels. Your retirement savings shrank alarmingly, you lost your job, your business faltered or failed, your access to credit vanished, you stopped spending, and the entire economy crashed.
The 2008 financial crisis devastated the business landscape, leading to trillions of dollars in losses, widespread bankruptcies, and a significant consolidation of corporate power and assets. The pattern of wealth transfer was not just from individuals and families, but also from failing or vulnerable businesses to a class of well-capitalised and strategically positioned entities. The crisis hit businesses through a collapse in consumer spending, a freeze in credit, and a massive devaluation of assets. The losses can be quantified across several dimensions:
The US stock market, as measured by the S&P 500 index, lost almost 60% of its value from 2007 to 2009, erasing approximately $12 trillion in shareholder value, much of this loss suffered by small individual investors. An estimated 200,000 small businesses closed between 2008 and 2010. They were particularly vulnerable due to their reliance on credit lines and local consumer spending, which evaporated. Major corporate bankruptcies also soared. In 2009, a record of nearly 300 publicly traded companies with over $1 billion in assets filed for bankruptcy. Among these were Lehman Brothers, General Motors, Chrysler (Stellantis), CIT I (CITI) Group, and Thornburg Mortgage. The construction and housing sector was obliterated. Over 1.4 million construction jobs were lost. Major homebuilders like KB Home and Lennar saw their stock prices fall over 90% and reported billions in losses as the housing market collapsed.
Just as with housing, the crisis created historic opportunities for well-positioned players to acquire valuable assets and market share at distressed prices. The gains flowed primarily to two groups: the surviving “Mega-Banks” like Goldman, Sachs, and private equity and distressed asset funds (all Jewish enterprises) like The Blackstone Group, Apollo Global Management, and Cerberus Capital Management. For the banks, the crisis acted as a brutal force of industry consolidation. Weakened or failing institutions were acquired by stronger rivals, often with government assistance. JPMorgan Chase acquired Bear Stearns and Washington Mutual. The Bank of America acquired Merrill Lynch and Countrywide Financial. This dramatically increased the market share and power of the remaining “too-big-to-fail” banks.
The equity and hedge funds had massive capital available which they used to buy the distressed debt of companies at a deep discount and eventually take control of them through bankruptcy restructuring. The surviving big banks and hedge funds purchased entire businesses or physical assets from forced sellers at a fraction of their former value. Large, cash-rich companies like Apple, Google, and Berkshire Hathaway were able to acquire smaller competitors or innovative startups that could no longer secure funding.
Investors
Enormous losses were suffered by the “investors” generally. Many banks and pension funds, for example, bought and held these toxic securities, and lost big. Who were the investors, or the categories of investors who actually bought the toxic securities from Goldman, Sachs and the other perpetrators? And how much did these different kinds of investors lose? And again, who were the beneficiaries? The sale of a toxic bundle of mortgages would have been a direct transfer of wealth from a small bank in, say, Oregon, directly to Goldman, Sachs.
This question gets to the heart of how the 2008 crisis spread from Wall Street to the world. The toxic mortgage-backed securities were sold to a wide range of investors, including pension funds, social security funds, foreign governments, major foreign banks, all experiencing catastrophic losses. Many major global banks and large financial institutions invested heavily in these securities for their high returns, and all suffered devastating losses. The Swiss bank UBS suffered the most, with losses totaling $380 billion. Merrill Lynch lost about $35 billion, Citigroup nearly $25 billion, HSBC about $10 billion. Bank of America, the second largest bank in the US, lost billions. Credit Suisse reported losses of about $78 billion, Deutsche Bank about $5 billion, IKB Germany about $10 billion. The serious failure of the British bank Northern Rock’s investment directly led to the bank’s nationalisation, which was the only way to save the bank. The British government paid 31 billion euros for the rescue operation.
The central banks of many countries, particularly those with large dollar reserves, invested in what were considered safe US government-sponsored debt. Foreign investors held over $1.3 trillion of debt from Fannie Mae and Freddie Mac alone. China was the largest holder, with its institutions owning $376 billion of these bonds. Japan, Luxembourg, Belgium, and the Cayman Islands were also major holders. When Fannie and Freddie failed, these nations faced massive potential losses.
The bankruptcies of General Motors and Chrysler were not from holding toxic mortgage assets, but as victims of the credit crunch. As banks suffered huge losses, they drastically reduced lending to preserve capital, making it nearly impossible for businesses and consumers to get loans. Auto sales rely heavily on credit, both for manufacturers to fund their operations and for consumers to get auto loans. With credit frozen, showrooms emptied. In October 2008, US car sales plummeted 32%, with GM’s sales falling 45%. As sales vanished, GM and Chrysler burned through their cash reserves. GM consumed $69 billion in a single quarter, leaving it with only $162 billion in reserves—below the minimum needed to operate. This led them to seek a government bailout to avoid total collapse.
It is useful to examine the flow of losses and gains in the commercial sector. We have the perpetrators, firms like Goldman Sachs, Merrill Lynch, and Citigroup, who created and sold the toxic securities, collecting fees and transferring risk. We have the investors who were other major banks, foreign governments, and institutional investors around the world, who purchased them seeking higher yields. Then the wealth transfer: When the securities became worthless, the wealth of these investor groups was wiped out. The beneficiaries were the institutions that had successfully created and sold these securities before the crash.
The Investment Banks
A row of for sale signs adorn the front of terraced houses on April 18, 2008 in Macclesfield, England. The United Kingdom’s financial outlook still looks gloomy, with house prices continuing to fall even after interest rates were reduced by the Bank of England.
In the aftermath of the 2008 financial collapse, the big banks were left holding such huge amounts of toxic derivative securities that they needed trillions from the FED to bail them out. How did that happen? Why didn’t they sell off all those securities, when that was the plan? This is the crucial question that gets to the heart of the failure. The plan to sell the toxic securities did not anticipate a fundamental, catastrophic breakdown in the system itself. The banks were left standing when the music stopped because the entire mechanism for selling them vanished. The market for toxic assets completely evaporated almost overnight, and their “originate-to-distribute” model failed spectacularly.
The core premise of (Goldman, for example) selling these securities was that there would always be a buyer. However, this relied on two things that ceased to exist in 2007-2008. The entire value of these securities was based on trust in the AAA ratings and the underlying models. When homeowners started defaulting, it became clear the ratings were fraudulent and the models either flawed or fraudulent. Investors no longer had any way to determine what these complex securities were actually worth and, with that realisation, their value plummeted. Every potential buyer in the world simultaneously realised the assets were toxic, and the demand that Wall Street had so carefully cultivated, disappeared because nobody would buy a product that was rapidly losing value from a seller who was desperate to get rid of it. The issuing mega-banks like Goldman and Lehman could not offload all the risk because there were no “greater fools” left, and they were left with massive exposure. The banks were all connected, and were all holding the same thing. There was no one left to sell to because everyone was a seller.
Before the investment banks could bundle and sell their toxic securities, they had to first accumulate thousands of mortgages. The riskiest portions of the CDOs were the hardest to sell, and the banks were often forced to keep these highest-risk portions on their own books, at least temporarily. When the market suddenly froze solid, they were caught holding billions in unsold NINJA mortgages that were plummeting in value. When the prices of these toxic assets began to collapse, a deadly spiral began. As the value of their assets fell, banks faced massive margin calls and had to post more collateral. This forced them to sell anything they could to raise cash. This drove selling prices down even further, which triggered more margin calls, forcing more sales. This “de-leveraging spiral” turned a problem into a catastrophe, rendering the banks insolvent as the value of their assets collapsed. When the US housing market crashed, it didn’t just affect a few banks; it affected every major financial institution in the world that had bought these securities.
The New York Times released an article commenting: “Pension funds and insurance companies lost billions of dollars on securities that they believed were solid investments, according to former Goldman employees with direct knowledge of the deals who asked not to be identified because they have confidentiality agreements with the firm. “Goldman was not the only firm that peddled these complex securities and then made financial bets against them, called selling short in Wall Street parlance.” [1] In response, Goldman Sachs published an open letter saying (1) “We did only good things and gave people what they wanted”, and [2] then blamed the victims for being prey.
One part of that letter said: “Synthetic CDOs were popular with many investors prior to the financial crisis because they gave investors the ability to work with banks to design tailored securities which met their particular criteria, whether it be ratings, leverage or other aspects of the transaction.” It is of course absolutely false that pension funds and other investors actually cooperated with Goldman, Sachs in designing these ticking time bombs, or that it was the investors who actually specified the criteria of LIAR and NINJA mortgages. Another part of the letter said, “The buyers of synthetic mortgage CDOs were large, sophisticated investors. [They] had significant in-house research staff to analyse portfolios and structures and to suggest modifications. They did not rely upon the issuing banks in making their investment decisions.” [2] That is classic (and Jewish) “blame the victim” response to their crimes and atrocities. It is also untrue. The investors did in fact depend on the words of Goldman, Sachs and the ratings issued by Moody or Standard & Poor, and drew further assurance from AIG’s insurance policies.
As one more example of the conscious and deliberate nature of this immense fraud, a Goldman, Sachs senior staff member was quoted at the time as saying, “We will never go back to normal, after what they have done.”
International
The contrived housing crisis dramatically affected individual homeowners and businesses, but equally there were crises that devastated the economies of many countries and pushed virtually the entire population into the lower class in one swoop. These international disasters were either under-reported or totally ignored by the US and Western media. Many nations were extortionately encouraged to borrow money at the FED’s low interest rates, but to “supplement” these loans with derivatives as insurance. Sadly for them, as the plot unraveled, many nations found themselves literally bankrupt. Greece was one of these nations.
This is actually a very important and underreported aspect of the crisis. The 2008 financial crisis caused staggering worldwide losses for governments, banks, and pension funds, with the fallout pushing several countries to the brink of collapse. The pain was not confined to the United States but spread globally through interconnected financial systems. The global financial sector suffered total losses of $1.5 trillion. Banks worldwide saw market values plummet by 50%, and a single “Black Monday” erased $2.5 trillion from global stock markets.
The collapse caused a severe sovereign debt crisis for many countries, leading to international bailouts with strict conditions. Greece, for example, had a sovereign debt crisis that led to a €240 billion EU/IMF bailout, requiring savage austerity (wage cuts, raised retirement age) and a loss of economic sovereignty. There were devastating losses to retirement savings globally, the crisis eviscerating the pension and social security funds of nations that had bought the toxic securities. In the OECD countries alone, private pension funds lost about $5 trillion in the crash, more than $300 billion in the US alone.
The Beneficiaries
Firms like Blackstone’s Invitation Homes spent $10 billion to acquire around 80,000 homes, becoming the largest single-family landlord in the US.
Who realized the gains? Who were the beneficiaries? The crisis functioned as a brutal mechanism for consolidating wealth. The gains were realised by those with capital to deploy during the collapse and those who were insulated from the fallout.
One small group that gained massively was the institutional home buyers like Blackstone and Invitation Homes. They purchased hundreds of thousands, if not millions, of foreclosed homes at steep discounts, converting them into permanent rental properties. Firms like Blackstone’s Invitation Homes spent $10 billion to acquire around 80,000 homes, becoming the largest single-family landlord in the US. They profited from rising rents and the subsequent recovery in home values.
The surviving banks like Goldman Sachs and JPMorgan Chase also profited enormously. Goldman Sachs famously profited by shorting the housing market, betting against the very mortgage products they were selling. These same banks also profited hugely from acquiring their failed rivals. JPMorgan Chase acquired Bear Stearns and Washington Mutual; Bank of America acquired Merrill Lynch. Goldman Sachs reported a nearly $5 billion profit in 2009, a year of deep recession for most Americans. The top 6 banks saw their market share grow significantly. These banks also profited handsomely from government bailouts (TARP), receiving $700 billion in taxpayer funds to stabilise them. This prevented their collapse and allowed them to regain profitability quickly.
Corporate Executives and the top 1% – the wealthiest households whose assets are more diversified, recovered quickly. The stock market, driven by Federal Reserve policy and corporate profits, entered on a long bull market. Executive compensation and bonuses at bailed-out firms remained high, causing public outrage. The top 1% recovered, but the bottom 80% of families did not. The crisis accelerated wealth inequality.
The data confirm that, just as with individuals and families, a massive wealth transfer occurred from the broader business ecosystem to the top 1% of financial entities and their stakeholders. The big winners were the partners and executives at the top-tier private equity firms, hedge funds, and investment banks, as well as the largest shareholders of the surviving “mega-corporations”. They were the direct beneficiaries of the fees, carried interest, and stock appreciation generated by these crisis-era maneuvers. The credit freeze and consumer collapse devalued the assets and equity of thousands of businesses, forcing the owners.to sell to these vultures – or file for bankruptcy, in which case the vultures would pick the bones anyway. Most commonly, it was the same small group of Jewish entities, often backed by the specific banks that caused the crisis, who acquired these assets at fire-sale prices. When the economy and markets recovered, the value of these acquired assets soared, generating immense profits for the few acquirers.
In essence, the crisis functioned as a brutal but highly efficient mechanism for the centralisation and consolidation of capital. It wiped out weaker competitors and transferred their assets to a small concentrated group of powerful financial corporate players, significantly accelerating wealth inequality at the corporate level. The “1%” didn’t just gain from homeowners; they gained from the carcass of Main Street business as well.
There are no documents that directly address the personal beneficiaries of the international losses, but we can infer from the patterns of bailouts and wealth transfers that similar dynamics occurred internationally as in the US. And, since the perpetrators of this immense fraud were exclusively the small group of Jewish bankers, hedge funds and billionaires in the US, we can assume the beneficiaries were these same firms plus related entities. We can also safely assume that the fire sales in other countries had the same purchasers as those in the US: the surviving mega-banks and their closest friends.
The Vultures
Larry Fink, BlackRock CEO, is a board member of Klaus Schwab’s World Economic Forum who preaches you will own nothing and be happy. Fink is also behind Zelensky, promising to invest in a war zone. Meanwhile, Fink sent his 2022 letter to CEOs of companies he has invested in on January 17th, 2022, while intimidating them to follow Schwab’s WEF. His letter reflected Klaus Schwab’s Agenda 2030. He stated:
“I write these letters as a fiduciary for our clients who entrust us to manage their assets – to highlight the themes that I believe are vital to driving durable long-term returns and to helping them reach their goals.”
One small group that gained massively were the institutional home buyers like Blackstone and Invitation Homes, Colony Capital, and American Homes 4 Rent. They purchased hundreds of thousands, if not millions, of foreclosed homes at steep discounts, converting them into permanent rental properties, and became some of the largest landlords of single-family homes in the United States. Blackstone morphed into the largest of these, spending $100 million per week (more than $10 billion in total) on homes and ultimately amassed a portfolio of over 80,000 properties. All reports were that rents immediately increased by about 10% after these purchases, the vulture funds profiting not only from rising rents but doubling their money from the subsequent recovery in house prices.
I have no total figures for the number of repossessed homes purchased by the hedge funds, but the media stated that they collectively had thousands of agents all over the US looking for repossessed homes to buy. I recall one article, I believe in the NYT, that said that one hedge fund had one man in one city in Florida who was making offers on more than 200 houses per week. If we extrapolate, there could have been hundreds of thousands of offers made each week. There were so many hedge funds and other wealthy individuals and financial groups buying repossessed homes that we will never know the totals. But there certainly were hundreds of thousands of repossessed houses purchased by these people, and potentially even millions. They used their massive capital reserves to buy homes in bulk, often in all-cash offers, easily outcompeting individual families who required mortgages and could not move as quickly.
The Bailouts
More than 1,000 demonstrators speaking out against corporate greed and social inequality took their protest to the New York Police Department (NYPD) headquarters. Source
We could benefit by examining some basic information on how the FED and/or the US government executed a series of complex programs that provided trillions of dollars to the large investment banks to bail them out. The general strategy had two main parts: providing massive short-term loans to keep the financial system from freezing solid, then directly injecting capital into banks to ensure they remained solvent.
The bailout of the large investment banks during the 2008 financial crisis was a series of complex programs involving trillions of dollars. The official narrative told us this was a general strategy providing massive short-term loans to keep the financial system from freezing solid, and then directly injecting capital into banks to ensure they remained solvent. But things were not as they seemed. This was a program entirely to socialise the losses of the financial elite onto the public balance sheet. The bailouts constituted an unconscionable use of public funds. The bankers and the entire cabal involved in this fraud collectively profited by trillions of dollars, and all their losses were borne by public taxpayers.
Companies like AIG were on the hook for billions. AIG had sold vast amounts of insurance (CDSs) on CDOs without setting aside enough capital to pay out. When the CDOs failed, AIG faced ruinous losses it could not cover, requiring a $85 billion federal bailout to prevent it from collapsing and pulling down its countless trading partners.
I have discussed AIG separately, but there was an enormous controversy surrounding AIG’s bailout, in large part because the money did not really go to AIG but to its counterparties – banks to whom it owed money. In other words, it wasn’t really AIG that was being bailed out, but the banks that helped bury it. Henry Paulson was pushing hard for these funds because his former company, Goldman, Sachs needed the money. There were three key issues about this bailout: the decision to pay AIG’s counterparties in full, the use of taxpayer funds to do so, and the extreme secrecy surrounding the entire process. Goldman received $14 billion from the bailout money paid to AIG, Societe Generale received $16 billion, Deutsche Bank about $9 billion, Bank of America $12 billion, and various US states about $12 billion.
It wasn’t only AIG that was bailed out. Paulson also engineered the purchase of Bear Sterns by JP Morgan, the reason being that Goldman had high exposure in these firms, the bailouts and mergers designed more to help Goldman avoid billions in losses than to save the other banks. When Paulson arranged the bailout of AIG, Goldman was spared around $30 billion in losses. In March 2008, Paulson oversaw the merger of Bear Stearns with JPMorgan Chase, a deal that also provided about $30 billion in government financing.
A major part of the bankers’ bailout was called the Capital Purchase Program, where the US government used taxpayer money to purchase preferred stock in all these banks. It gave the government no ownership rights, but gave the banks an enormous increase in their capital (and loose cash), enabling them to function normally again, free of debt, and also with cash to buy “distressed assets” – the assets being those that their scheme “distressed” in the first place. The banks did pay dividends to the government on these shares, but that was trivial in comparison to the trillions involved. Some of this investment in stock came from the TARP program, with Citigroup, JPMorgan, Wells Fargo, and Bank of America receiving $25 billion each; and Goldman Sachs and Morgan Stanley with $10 billion each.
There was another private sector “pooled” fund, a mechanism where 10 major banks created a $700 billion “bail-out fund”. Then we had the FED’s “Liquidity Programs” that provided massive, ongoing short-term loans via auctions and market operations. These loans totaling trillions of dollars were supposedly backed by “collateral”, but the FED expanded the definition of collateral until it became almost meaningless. The total commitment was staggering, involving trillions in both government funds and federal guarantees – all taxpayer money. In real life, the US government took money from the public who had been devastated by this immense fraud, and gave it to the same banks that executed this fraud. For example, right after Lehman’s collapse, the Fed injected $700 billion into the system in a single day and made regular loans of around $25 billion in single auctions.
There were two other important actions; (1) The FDIC also temporarily guaranteed all non-interest-bearing bank accounts (typically used by businesses) and (2) provided a 3-year guarantee on the debts of all banks to restore confidence in interbank lending. To summarise: The FED lent virtually all banks literally trillions of dollars at zero or virtually zero interest, to bail them out. That money was mostly tossed into the stock markets and, over a period of years, the profits were high enough to cover the losses and repay the FED. Hong Kong’s Wen Wei Po published a report that the US had directly injected capital into banks. According to the media, the nine major banks were Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America and Merrill Lynch, Citigroup, Wells Fargo, Bank of New York Mellon and State Street. [3] [4] [5] [6] [7] [8]
After the crisis, Paulson and Goldman Sachs pushed for the establishment of a new category of bank under the title of “Global Systematically Important Bank (GSiB)“. GsiBs are classified as those banks whose systemic risk profile is deemed to be of such importance that the bank’s failure would trigger a wider financial crisis and threaten the global economy. This was the culmination of the “too big to fail” fairytale, and resulted in these Jewish banks (and bankers) now being perpetually protected from the results of future criminal acts, with a guarantee that the US Treasury would inject any amount of capital necessary to maintain their solvency.
Paulson used his new power to actually loot the US Treasury of $30 billion to purchase Bear Stern’s bad debts. That was an unconscionable theft of taxpayer money, without precedent or justification, and represented an enormous breach of faith. Paulson simply used his position and authority as a public servant to steal in total hundreds of billions of taxpayer dollars to save his Jewish friends in the other banks. And in fact, Paulson arranged for his old firm Goldman, Sachs to receive billions in bailout funds, because the company was in serious trouble: The after year the financial crisis began, Goldman’s shares plummeted by nearly 80%. In mid-September of 2008, to prevent Goldman itself from bankruptcy, Paulson arranged for the Bush administration to permit the firm to incorporate as a bank holding company. This gave Goldman access to a lifeline of extremely cheap loans from the Federal Reserve, and created $13 billion in excess profits for Goldman. Paulson engineered the same bailout for JP Morgan. Bloomberg reported that those bailouts to the faltering Jewish banks totaled $1.2 trillion. All of that was taxpayer money given to the criminals to save them from the effects of their own crimes.
Before the end of 2008, Henry Paulson arranged the nationalisation of mortgage giants Fannie Mae and Freddie Mac, supported Bank of America as it absorbed Merrill Lynch, provided an $85 billion government rescue package to insurer AIG, instituted government guarantees for more than $3 trillion worth of money market funds, and got congressional approval of a $700 billion arsenal of government support for the entire financial system. The Treasury, during Paulson’s tenure, also established the Troubled Assets Relief Program (TARP).
After the U.S. government announced the takeover of Fannie Mae and Freddie Mac, and after providing enormous support to the banks, the US financial system still had no stability. Wall Street suffered a triple blow when Lehman Brothers went bankrupt, American International Group (AIG) desperately needed a $400 billion loan, and Merrill Lynch was acquired by Bank of America for nearly $440 billion. [9]
Other countries had to do the same, to prevent their own financial sectors from total collapse. The governments of European countries such as France, Germany, Spain, the Netherlands and Austria launched their own bank rescue plans on October 13, with a total amount of 1.3 trillion euros. The German Ministry of Finance provided 5 trillion euros in loan guarantees and funds, 4 trillion euros as loan guarantees, equity injections of 800 billion euros into the banking system, and 200 billion euros from the budget to make up for possible loan losses. This was the largest market intervention by the German government since the fall of the Berlin Wall in 1989.
On September 20, 2008, when the Bush administration submitted a bill to Congress to save the financial system with TARP and other programs, major Western countries joined the firefighting and rescue operations, injecting huge amounts of money into the financial markets one after another. Within a week of the Lehman bankruptcy, several major European central banks injected a total of $64 billion into the banking system; On September 18, the Federal Reserve, the European Central Bank, the Bank of Japan and six other central banks issued a joint statement, announcing that they would jointly inject $247 billion into the financial system; the Bank of England injected about $9 billion into the UK’s short-term financial market; the Bank of Japan injected nearly $50 billion into the market. The Russian Ministry of Finance and the Central Bank injected about $20 billion. In addition, Asia-Pacific countries and regions such as China, India, South Korea, and Hong Kong also took rescue measures such as interest rate cuts and capital injections.
France announced a financing plan of 3.6 trillion euros of loan guarantees and share purchases. The Spanish government planned to use 1 trillion euros to guarantee bank debt, while the Austrian government said it would provide up to 850 billion euros of guarantees and another 150 billion euros of capital injected into the banks. The UK Treasury injected nearly £400 billion into Royal Bank of Scotland, HBOS and Lloyds TSB Bank. The Dutch government said it would guarantee 2 trillion euros of interbank loans. Italy said that the Italian government would implement “any necessary measures” to save the country’s banks. EU leaders also agreed to guarantee all new bank debt and to use taxpayer funds to protect all the lenders.
Let’s Have a Financial Crisis
In a prior article titled “Humanity at the Crossroads” [10] I dealt briefly with one example of the outcome of a nation signing this bankers’ agreement, only to have the Jewish vultures descend on it with a vengeance. In that article I wrote: Greece is now a failed state, an almost perfect exemplar of our future, the definitive ideal of those planning the world to come. Driven into bankruptcy by unrepayable loans, the leaders of Greece threw away their nation’s one chance for survival as a sovereign state and instead capitulated totally, accepting draconian measures meant to perpetually impoverish their population, while privatising the entire nation in one fell swoop.
The international (Jewish) bankers bullied Greece into placing the nation’s entire infrastructure into a so-called trust (controlled by “an independent Luxembourg-based company”), which, by order, would be “entirely outside the reach or influence” of the Greek government. The bankers and their friends will now take ownership of all of it, at prices they set. Greece has virtually ceased to exist as a sovereign nation, and there are many others similar, including Cyprus, Haiti, Somalia, Iraq, Libya, the Balkans, Panama, Nicaragua.
I began that article with this: Humankind is at a cusp, a point of transition between two different states of governance and existence. The world today is like a sack being slowly filled while the string around the opening is pulled increasingly tighter to prevent the contents from escaping confinement. The shadows of this future are everywhere to be seen but even the keenest of observers tend to view the portents not as the warnings they are, but instead regard all these pieces of one despairing puzzle as disconnected and unrelated events.
I wrote above that the FED raised interest rates in 2006, ostensibly in an attempt to slow the growth of the housing market, but surreptitiously an act that effectively burst the bubble to collapse house prices, force the nearly limitless foreclosures, and permit the hedge funds to purchase all those homes after prices collapsed. But that’s only part of the story. In an earlier essay titled “Let’s Have a Financial Crisis, [11] I explained that every crash, every recession, in the US has been caused in precisely the same way: the FED turns the credit and money taps wide open to create a housing or stock market bubble, then severely contracts the money supply and credit to burst the bubble. The outcome is the same in every case: When “the blood is flowing in the streets”, the Jewish investment banks, financiers, hedge funds, billionaires, and other vultures, then buy up all the insolvent and bankrupt banks and companies (and homes) for pennies on the dollar. Then, the FED slowly returns the money and credit situation to normal, re-inflates the stock market, waits a few years, and repeats. This is so obvious that it’s a template easily recognised.
This has been the standard modus operandi for the Jewish bankers for at least 150 years in the US. As one example, we have the communication from the National Bankers’ Association in what came to be known as the “Panic Circular of 1893.” It stated: “You will at once retire one-third of your circulation and call in one-half of your loans.” And that is how these Jewish central bankers create recessions after they build a bubble: an instant reduction of 35% or more in the nation’s money supply and a 50% reduction in total credit. The inevitable result is the bankruptcies of thousands of corporations and banks, and an enormous plunge in stock market values and corporate assets of every description – which are now available for pennies on the dollar. Wait five or ten years, and repeat. The purpose is the immense transfer of wealth available in each such cycle, and not only from small banks and corporations but from the general public as well, many of whom also lose everything they had, all of those assets eventually filtering up to the few Jewish oligarchy bankers who planned the events. The Great Depression of the 1930s was one such deliberately-contrived travesty. The 1983 financial disaster was another, this one even openly and publicly announced by Paul Volcker.
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Mr. Romanoff’s writing has been translated into 34 languages and his articles posted on more than 150 foreign-language news and politics websites in more than 30 countries, as well as more than 100 English language platforms. Larry Romanoff is a retired management consultant and businessman. He has held senior executive positions in international consulting firms, and owned an international import-export business. He has been a visiting professor at Shanghai’s Fudan University, presenting case studies in international affairs to senior EMBA classes. Mr. Romanoff lives in Shanghai and is currently writing a series of ten books generally related to China and the West. He is one of the contributing authors to Cynthia McKinney’s new anthology ‘When China Sneezes’. (Chap. 2 — Dealing with Demons).
His full archive can be seen at
https://www.bluemoonofshanghai.com/ + https://www.moonofshanghai.com/
He can be contacted at: 2186604556@qq.com
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NOTES – Aftermath
[1] Goldman, Sachs
https://www.nytimes.com/2009/12/24/business/24trading.html
[2] Letter now deleted
https://www.goldmansachs.com/media-relations/in-the-news/archive/response-scdo.html
[3] The Fed once again lent $24.12 billion to large investment banks
http://finance.ce.cn/fe/gdxw/200805/02/t20080502_13027280.shtml
[4] The Fed injected $70 billion into the financial system
https://www.chinanews.com/cj/gjcj/news/2008/09-17/1383884.shtml
[5] The United States used $250 billion to invest in nine major banks in hopes of restoring market confidence
https://www.chinanews.com.cn/hb/news/2008/10-15/1412236.shtml
[6] The United States supports banks with $250 billion, and Europe and Australia have introduced rescue plans
http://news.big5.enorth.com.cn/system/2008/10/15/003719691.shtml
[7] The U.S. “bailout cake” is distributed, and the banking industry is the first to “try it”
http://big5.news.cn/gate/big5/jjckb.xinhuanet.com/gjxw/2008-10/29/content_125033.htm
[8] “Relief fund” or “equalization fund”?
https://opinion.caixin.com/m/2008-09-16/100189777.html
[9] The Federal Reserve joined forces with ten banks to establish a 700 billion equalization fund
https://big5.cctv.com/gate/big5/finance.cctv.com/20080916/101034.shtml
[10] Humanity at the Crossroads
[11] Let’s Have a Financial Crisis
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