January 26th to Feb. 1st 2008
Weekly Edition, published every Saturday
@ 8AM EST ( 1PM GMT)

The answer of who is getting the OVERWHELMING MOST AMOUNT OF CASH
of 'economic stimulus' from the government is: USA Banks, stock market investors, bond salesmen, corporations, some small businesses, home mortgage lenders, etc. getting tax breaks and cheap big bank loans for themselves (cheap rates not passed on to average consumer who's still paying credit card fees).

You didn't think most of it was going to the average American, did you? Or to the poor, unemployed, or senior citizens. These folks are getting almost nothing. The middle class is getting a token amount to make it look good.

Lawmakers Clash on Economic Stimulus

The darker side of interest rate cuts

Photo, above, of French rogue trader who lost $7.2 Billion dollars illegally trading with money from French bank, Soceité Generale
This is the biggest single scam and robbery in history.

Are such claims for real? Some are now trying to claim the upcoming crash of the global economy was caused by him, not by USA bad home loans and bad banking practices.

Juicing the economy will come at a cost

Fed Cuts Won't Help

Fed Rate-Cut Winners and Losers

What caused the current banking crisis?

Bad loans from USA banks given to people who could not pay back the money, mainly for new homes.

The loans were given at super-cheap attractive interest rates and even with no money down. (called in slang: NINJA Loans: No Income No Job).

These were called "sub-prime,' loans because the interest rate was below the normal standard. But the interest rate was 'variable,' meaning that it would increase after a year or two. That's when the house of cards came crashing down, when the loan rates increased and people could no longer make the exorbitant payments.

Why would a bank make bad loans ?

Because the profit all came from making the loan, not in getting repayment. Fees for these 'sub-prime' loans were high, and the money was spread around.

Lots of speculators were also taking advantage of this, buying houses with cheap loans and selling the houses real quick -- often at artificially high and false property assessment values.

When property prices and sales started to decline the homes became less valuable then them mortgages, encouraging the speculators to just abandon them.

Then who got the payments?

The USA banks 'sold,' the debt to other banks worldwide, which is why it became a global crisis.

While buying and selling debt may seem strange to the average person it's the essence of bonds and US treasury auctions: You buy debt, you're suppose to get paid back with interest.

But suddenly no one was getting paid back.