Saturday, July 3, 2010

Obamanomics: Let them eat mortgages

July 3, 2010 (LPAC)—Just as Lyndon LaRouche has warned, repeatedly, over the past month, the Obama Administration is creating a Weimar-scale hyperinflationary bubble, using the very same scheme that Alan Greenspan perfected at the outset of the financial blowout, in 1998.
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Back in 1998, in the wake of the LTCM near-collapse, Fed Chairman Alan Greenspan massively recapitalized the commercial banks by having Fannie and Freddie purchase almost all of the banks' mortgage portfolios. Between the Fed funny money and the near-zero interest-rate policy, Greenspan engineered the biggest real estate bubble in history, the very bubble that blew in 2007, and which Bernanke, Geithner, and company are trying to reflate once again through the same Fannie and Freddie conduits.

So, that's what Obama's "recovery" consists of: a real estate bubble like the one that just collapsed, with nothing to support the prices other than Bernanke's printing press and fleet of helicopters.