January 2011 archive

This essay is a companion piece to the “Atheists and Agnostics Need Not Apply” essay by The MomCat yesterday. It’s also a followup to a comment I made near the bottom of the threads.

It’s actually fairly common knowledge that Muslim fundamentalists have been turning the USAF academy into a hell hole for non-believers. Cadets are forced to pretend they are Muslim or face harassment and /or expulsion. Additionally, the mostly Sunni staff lies uneasily in bed with the radical Shiite clerics who enforce an early test form of Sharia Law that may wrk in Uhmerica.

A lot of what I’ll be quoting here goes to Thruthdoubt. Here is their link. This essay was published 30 Sep 2010. It’s recent. Don’t let the code phrases for evangelicals confuse you with the Islamists. It’s part of the plot to slip this into the Uhmerican mainstream under the radar.

Like I said, the news is old. Here’s an article Air Force Removes Chaplain From Post –

Officer Decried Evangelicals’ (read Imama’s) Influence from WakPo dated 13 May 2005. That’s a five year time span. that’s a long term plan and a concerted effort to hijack the USAF, the Strategic Air Command and the Missile Command. This includes “Looking Glass” the nuclear super hardened command center deep in the bowels of Cheyenne Mountain.

I’m going to toss out some blockquotes so you can get a sense of what’s going on. Truthdoubt and WakPo will be the origins. I don’t need to go any further than two articles five years apart. For now. Note the one cadet quote going back to 1977.

There’s a veteran’s group, the MRFF, that follows this closely. Here’s their cred: MRFF Nominated for Nobel Peace Prize

October 27, 2009 Can you imagine that? Nobel Peace Prizes for Al Gore, Barack Hussein Obama and a bunch of supposed veterans trying to throw out the true evangelicals left standing at the USAFA. And they’ll probably win it!!! Where’s the Nobel for George W (Texas Ranger) Bush for creating the  concept of pre-emptive war in order to save lives? What is wrong with this world?

The USAF Academy is located in Colorado Springs. It’s nick name is “the Evangelical Vatican”. It’s also known as the “The Christian Mecca” as a way of throwing people off the scent. It’s part of the inside joke of what the terrorists are doing to take over our nuclear capability. Some small background via Wiki:

The military boom continued and in 1963, NORAD’s main facility was built in Cheyenne Mountain. This placed NORAD directly next to Colorado Springs and permanently secured the city’s military presence. During the Cold War the city greatly expanded due to increased revenue from various industries and the prevailing military presence in the city. In the mid 1970s, Ent Air Force Base was shut down and later converted into the United States Olympic Training Center. Military presence was further increased in 1983 with the founding of Falcon Air Force Base (later changed to Schriever Air Force Base), a base primarily tasked with missile defense and satellite control. Fort Carson and Peterson are still growing and continue to contribute to the city’s growth. Air Force Space Command is located on Peterson AFB.

Not well known, but jihadist training camps are exact copies of the US Olympic Training Center complete with demolition training and live fire exercises.

Religious institutions

Focus on the Family Visitors Center

Although houses of worship of almost every major religion can be found in the city, Colorado Springs has attracted a large influx of Evangelical Christians and Christian organizations in recent years. At one time Colorado Springs was counted to be the national headquarters for 81 different religious organizations, earning the city the tongue-in-cheek nickname “the Evangelical Vatican”[48] and “The Christian Mecca”[citation needed]. Religious groups with regional or international headquarters in Colorado Springs include: the Association of Christian Schools International, the Christian and Missionary Alliance, Compassion International, Every Home for Christ, Focus on the Family, HCJB, the International Bible Society, The Navigators, the Roman Catholic Diocese of Colorado Springs, WAY-FM Media Group, Andrew Wommack Ministries, and Young Life.

Italics mine.

Many of these organizations have about five percent of their worth skimmed into the informal Islamic banking system. They’ll deny it vehemently. The more vehemently they deny it, the more truth may be behind the rumor. Think about that for a minute.

The BQs are after the jump. Enjoy. And be sure to follow the link to the last on and read the full article. If you don’t, you’ll be leaving yourself very ignorant and vulnerable  to a Fifth Column effort in the USAF.

Allahu Akbar!

Bradley Manning’s detention conditions got worse this week. He is now being held in total isolation in the brig at the Quantico, VA Marine Base. As has been reported by his friend David House, the only visitor he is allowed besides his lawyer, Manning’s mental and physical condition has been deteriorating steadily during his seven month long detention. Manning has no history violence or disciplinary infractions and that he is a pre-trial detainee not yet convicted of any offense.

Last Friday Jane Hamsher reported on Manning’s detention and a complaint that has been filed protesting his abuse:

For over five months, Bradley Manning has been held under Prevention of Injury (POI) watch at the Quantico Brig against the recommendations of three forensic psychiatrists. Manning’s attorney, David Coombs, has filed an Article 138 Complaint under the Uniform Code of Military Justice, asserting that this represents an abuse of Brig Commander James Averhart’s discretion.

Coombs’ complaint was filed after the Brig Commander placed Manning under “suicide risk” and MAX custody earlier this week, which made his conditions dramatically worse. Glenn Greenwald broke the story about the inhumane conditions of Manning’s pre-trial confinement last month, shortly before the New York Times reported that the Justice Department strategy regarding Wikileaks was to “persuade” Manning to testify against Julain Assange.. . . . .

Bradley Manning has not been convicted of anything. Abusing his mental health classification while attempting to “persuade” him to testify against Julian Assange has alarming echoes of the techniques used to elicit false confessions from terrorist suspects.  It should alarm everyone that we could be watching pre-trial coersion becoming acceptable American shores.  If so, we can all wave goodbye to “innocent until proven guilty.”

Today Jane, accompanied by David House, went to Quantico to visit Manning and deliver a protest petition to brig officials. Instead they were detained at the gate and harassed by the MP’s who readily admitted they were ordered to do so.

Between 1:00 – 1:30 MPs took their IDs and made them sign a form that they could not deviate to the brig or else they would be considered trespassing. At this time, one of the MPs asked for Hamsher’s auto insurance card. MP Gunnery Sgt. Foster informed Hamsher that her car would be towed after declining to accept a digital copy of Hamsher’s insurance card. House and Hamsher offered to drive off the base but were denied, despite being detained only ten feet inside the base’s perimeter. The MPs then took the Social Security numbers, phone numbers and addresses of House and Hamsher.

Around 1:40 the tow truck arrived and MPs instructed House and Hamsher to leave their vehicle, informing them that their vehicle would be searched. At 2:00 pm House observed military officers arriving and entering the MP outpost which oversaw their detainment. House expressed concern that he would miss Manning’s visiting hours but was told that he could neither exit nor move forward to the base. No explanation for House and Hamsher’s detainment was provided until, and they were held until 2:50 when they were informed they could leave the base. They were detained for two hours up until Manning’s visitation time period expired at 3:00 pm.

House and Jane have visited Manning in the past but not since Amnesty International filed a complaint to Defense Secretary Robert Gates calling for an investigation into the conditions of Manning’s confinement. The Amnesty International complaint came on the heals of the United Nations’ special rapporteur on torture, Juan E. Mendez, submitting a formal inquiry about the conditions of Manning’s detention. House was banned today from seeing Manning. One of the question now is will he be banned in the future because of his reports on Manning’s condition under these harsh conditions.

I look around at the reports about the resumption of the military commissions at Guantanamo and the new policies on the use of Miranda in terrorist interrogations and I wonder is this still the United States? What happened to our principles of justice, not that they ever favored the underprivileged? Is this country turning into the new Soviet Russia?

Crossposted from The Stars Hollow Gazette

The next part of my story centers around frauds 6, 7, 8, and 9 of 11 criminal frauds.

AMBAC is a Monoline Insurer and they offer-

Bond insurance is a service whereby issuers of a bond can pay a premium to a third party, who will provide interest and capital repayments as specified in the bond in the event of the failure of the issuer to do so. The effect of this is to raise the rating of the bond to the rating of the insurer; accordingly, a bond insurer’s credit rating must be almost perfect.

The premium requested for insurance on a bond is a measure of the perceived risk of failure of the issuer.

The economic value of bond insurance to the governmental unit, agency, or company offering bonds is a saving in interest costs reflecting the difference in yield on an insured bond from that on the same bond if uninsured. Insured securities ranged from municipal bonds and structured finance bonds to collateralized debt obligations (CDOs) domestically and abroad.

AMBAC is suing Bear Stearns (JP Morgan Chase).

The Ambac Suit: Bear Stearns Execs Double-Dipped, Committed Criminal Fraud on Investors

By: David Dayen Tuesday January 25, 2011 11:01 am

The mortgage traders at Bear, who now are spread out across the financial sector, sold purposefully bad securities to investors – emails revealed show that they told superiors they were selling “a sack of shit.” They got data on their pools of mortgages bundled up in securities deals that came back with high percentages of bad underwriting or even loans already slipping into default. They falsified that data for the rating agencies to get AAA ratings, never told the investors about the bad loans in the pools, and sold the shit as gold. But it gets worse.

…

They got paid by the investors for selling the mortgage-backed security, AND they got paid by the originator for taking back the bad loan. So Bear traders made money on the same mortgage twice. Only the investors could force a put-back on an originator after the security was sold – Bear Stearns didn’t have a legal claim on the loan after they sold it. They did so anyway.

There is no legal universe under the sun where that isn’t just criminal fraud and theft. Ambac eventually discovered that 80% of the loans in its MBS had an early payment default. They were corrupted and substandard from the moment they received them, so awful that Bear Stearns was forcing the bank to take them back – even though they didn’t own the loans.

This Ambac suit names the actual decision-makers, Marano and two others who are working at Goldman Sachs and Bank of America. JPMorgan, which now owns Bear Stearns, is named in the lawsuit as well, as a responsible party. It seems that this is a pretty standard repurchase lawsuit, but Ambac added accounting fraud to the claim to double the award owed to them.

The original Atlantic article-

E-mails Suggest Bear Stearns Cheated Clients Out of Billions

Teri Buhl, The Atlantic

Jan 25 2011, 1:01 AM ET

Former Bear Stearns mortgage executives who now run mortgage divisions of Goldman Sachs, Bank of America, and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities they created and sold while at Bear. According to e-mails and internal audits, JPMorgan had known about this fraud since the spring of 2008, but hid it from the public eye through legal maneuvering. Last week a lawsuit filed in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JPMorgan was unsealed. The lawsuit’s supporting e-mails, going back as far as 2005, highlight Bear traders telling their superiors they were selling investors like Ambac a “sack of shit.”

…

According to the lawsuit, the Bear traders would sell toxic mortgage securities to investors and then sell back the bad loans with early payment defaults to the banks that originated them at a discount. The traders would pocket the refund, and would not pass it on to the mortgage trust, which was where it should have gone to be distributed to the investors who owned the bonds. The Marano-led traders also cut the time allowed for early payment defaults, without telling the bond investors. That way, Bear could quickly securitize defective loans, without leaving enough time for investors to do their own due diligence after the bonds were sold and put-back any bad loans to Bear.

The traders were essentially double-dipping — getting paid twice on the deal. How was this possible? Once the security was sold, they didn’t have a legal claim to get cash back from the bad loans — that claim belonged to bond investors — but they did so anyway and kept the money. Thus, Bear was cheating the investors they promised to have sold a safe product out of their cash. According to former Bear Stearns and EMC traders and analysts who spoke with The Atlantic, Nierenberg and Verschleiser were the decision-makers for the double dipping scheme, and thus, are named as individual defendants in the suit.

…

Last week, JPMorgan CEO Jamie Dimon said it will take years to get through mortgage litigation risk the bank inherited and had set aside around $9 billion for litigation-related risk. Yet in the bank’s January earnings call, Dimon suggested that the bank may not have to buy back any soured mortgages from private investors and said that the issue is “not that material” for JPMorgan. Still, Ambac recently won a court order in December to add accounting fraud against JPMorgan to its suit, which can double or triple lawsuit awards. So it’s hard to tell whether America’s largest bank is prepared to pay for the sins of Bear. JPMorgan did fight tooth and nail for the Ambac suit not to be made public, however, because the firm argued it could damage the reputations of senior bank executives currently working in the industry. Individuals named as defendants in the amended complaint include: Jimmy Cayne, Alan “ACE” Greenberg, Warren Spector, Alan Schwartz, Thomas Marano, Jeffrey Mayer, Mary Haggerty, Baron Silverstein, Jeffrey Verschleiser, and Michael Nierenberg. But the court chose to fold these individuals into the charges against JPMorgan as the case goes through appeal.

JPMorgan is not the only firm in trouble-

Countrywide Accused in Lawsuit of ‘Massive Fraud’

By Karen Freifeld, Bloomberg News

Jan 25, 2011 5:54 PM ET

Bank of America Inc.’s Countrywide Financial unit, acquired by the bank in 2008, was accused of “massive fraud” in a lawsuit by investors who claim they were misled about mortgage-backed securities.

TIAA-CREF Life Insurance Co., New York Life Insurance Co. and Dexia Holdings Inc. are among a dozen institutional investors who filed the complaint yesterday in New York state Supreme Court.

Crossposted from The Stars Hollow Gazette

As I’ve pointed out before one of the confusing things about Bankster Fraud is that there are no less than 11 different criminal frauds that are all lumped together.

In my next piece I’m going to examine one particular part of this puzzle, but I should note that starting tomorrow we’re going to be one step closer to the jump-suited perp walks we’ll need to see in order to unwind this discredited neo-liberal disaster of an economy with the release of the Financial Crisis Inquiry Commission report which recommends investigation by the Department of Justice for Criminal Prosecution.

Financial Crisis Commission Finds Cause For Prosecution Of Wall Street

Shahien Nasiripour, The Huffington Post

01/24/11 07:29 PM

(T)he decision to refer cases for potential prosecution could provoke a different conclusion: It may yet satisfy public craving for what Treasury Secretary Timothy Geithner once referred to as the “very deep public desire for Old Testament justice.”

…

The commission drew on testimony from less prominent senior executives with intimate knowledge of how Wall Street engaged in modern-day financial alchemy, turning mountains of dubious mortgages into seemingly rock-solid investments rated as safe as American Treasury bonds.

Richard Bowen, former chief underwriter for Citigroup’s consumer-lending unit, testified that, in the middle of 2006, he discovered more than 60 percent of the mortgages the bank had purchased from other firms and then sold to investors were “defective,” meaning they did not satisfy the bank’s own lending criteria.

Keith Johnson, former president of Clayton Holdings, one of the top mortgage research companies, testified that some 28 percent of the loans given to homeowners with poor credit examined by his firm for Wall Street banks failed to meet basic standards. Yet nearly half appear to have been sold to investors regardless, he added.

FCIC Will Refer Report to Authorities for Potential Criminal Prosecution

By: David Dayen, Firedog Lake

Tuesday January 25, 2011 6:00 am

Many have found themselves disappointed in the FCIC’s work to this point, be it their inability to gain headlines, their inability to issue subpoenas without bipartisan cooperation, or even the commission’s personnel. But lest we forget that the FCIC uncovered, virtually by itself, the enormous mortgage bond scandal, based on testimony they gathered from Clayton Holdings in October. William D. Cohan said at the time that this strong, if pulled properly, could lead to justice:

…

This could be the building block for the criminal referrals, or it could be something deeper. But we know it will be backed up by a voluminous amount of evidence. In addition to their long report on the origins of the crisis, Yves Smith notes that the FCIC will release audio archives of all of their interviews with hundreds of witnesses. She was one of them. They will also release all the source documents, which is crucial.

As for the report itself, the Democratic version promises to be extremely satisfying to those who recognize quickly that corporate greed, deregulation and a financial industry determined to sidestep oversight entirely with the shadow banking system caused the crisis. One official told Reuters that Commission Chair Phil Angelides subscribed to the “vampire squid” view of the crisis, recalling the famous turn of phrase Matt Taibbi used to describe Goldman Sachs.