Thursday, May 29, 2008

Bear Stearns To Merge With J.P. Morgan This Friday -- Did The Federal Reserve Bank Engineer This Collapse?

In what has to date been the largest collapse of a single company in the history of Wall Street, many of the now 7000 unemployed former Bear Stearns' employees could only stare in total silence and disbelief as Stearns' chairman, James Cayne, told them that he apologized for not acting sooner to avoid the destruction of what was once a Wall Street giant.

While the media continues to report on how much money was lost due to bad investments (by what was once the nation's fifth largest brokerage house), the SEC is now investigating whether or not insider trading took place leading up to of Bear Stearns' collapse.

As most on Wall Street will tell you, the loss of money is mostly perception, since it's never truly lost, just exchanged by those who correctly bet on whether or not a stock will rise or fall.

However, don't bother telling this to those who bet on Bear Stearns' stock rising in the future, as many of them have now lost their entire life savings.

I think that if the SEC does its job correctly (However, I doubt that it will), they will find that there was considerable insider trading on this stock in the months leading up to its collapse. And by this I mean shorting the stock.

Shorting a stock refers to purchasing a put option on the stock, while betting that it will decrease in value by a certain price and date. Put options are how investors can actually make profits with a company that is actually losing its value.

In the case of Bear Stearns, it has been rumored that the Federal Reserve Bank refused to negotiate a deal with teh brokerage long before it declined to the point of bankruptcy. Taking this into account, as well as the White Knight scenario which later took place with J.P. Morgan's attempt to purchase Bear Stearns' stock at a paltry two dollars a share (as well as with the blessings and help of the privately held Federal Reserve Bank), it seems to me that there may have been collusion on the part of the FED as well as J.P. Morgan, to steal Bear Stearns out from under its share holders.

The Federal Reserve is certainly no stranger to such machinations, and perpetrated a similar crime which resulted in the collapse of Wall Street in 1929, and the subsequent Great Depression which later followed it the throughout the 1930's. The result of the Fed's tightening of credit while prematurely calling in many of its loans.

Moreover, in the case of the Federal Reserve and its powerful connections to Congress and Wall Street, the Securities and Exchange Commission (SEC) is not likely to do a legitimate investigation here, and instead more inclined to whitewash the entire situation by covering up what evidence it finds of a Federal Reserve Bank conspiracy, in which to defraud Bear Stearns' investors of their investments in the once flourishing brokerage house.

Which leads me to the following question: How many other major companies might we see in a similar situation in the future? Especially with a declining economy? For it seems to me that for the Federal Reserve, it's getting mighty close to 1929 all over again, and with a similar scenario being played out here.

A chance for the Federal Reserve to once again purchase large companies for pennies on the dollar.

Imagine if the Bear Stearns' situation became a common one on Wall Street, with myriad companies losing their equity practically overnight, while wiping out the life savings of their investors. This is a far more realistic scenario in the present day than most people might care to admit.

However, unlike the crash of '29, this time around our dollars are no longer worth 100 percent of their value as they were back then, but instead approximately four percent of it. A result of the Federal Reserve Bank's printing currency which is based on nothing of inherent value, as well as this privately held and congressionally sanctioned counterfeiter going to the proverbial well (in this case the American taxpayers) once too often.

So if the word Depression is circling around in your heads by now, it's for good reason. Since Americans may well be on their way to just that. And courtesy of the Federal Reserve Bank -- counterfeiter and parasite of the American people and their hard earned wages. The moral of the story: never trust anyone who creates money out of thin air and then lends it to you to purchase something that is real.

It's called fraud. And something that the Federal Reserve has in fact been practicing quite successfully since 1913. And why the American economy is now bordering on a total collapse.

Bear Stearns' CEO apologizes to investors:
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