Want a glimpse of Australia’s future?
Watch this shocking story from America’s 60 Minutes:
Pretty distressing, right?
It was exotic “mortgage-backed investments” that triggered the GFC in America. And as you just saw, they are still very much at the heart of their terrible ongoing crisis, where 1 in 7 (44 million) are now living on food stamps.
Just as in the USA and other countries, our Labor government responded to the GFC by “stimulus”. And, by propping up our “safe as houses” bankstering system.
This is the same “best in the world” bankstering system that has just $2.67 Billion in On-Balance Sheet Assets, versus $15 TRILLION in Off-Balance Sheet “business”. The bulk of that off-the-books “business” is exotic “derivatives” bets on interest rates, and foreign exchange rates.
How exactly did Labor prop up our bankstering system?
Amongst other things, by using taxpayer’s money to “invest” billions in … yep, Residential Mortgage-Backed Securities (RMBS).
$16 Billion, to be precise.
But $16 Billion wasn’t enough. Just last month, Wayne Swan authorised the AOFM to “invest” another $4 Billion in these “mortgage backed investments”:
Click to enlarge
According to numerous sources including The Economist magazine, Australia has the most overvalued housing in the world.
And earlier this month, we learned that house prices fell by the most in 12 years in the March quarter.
That $20 Billion pumped into Residential Mortgage-Backed Securities is not looking such a great “investment” now, ‘eh Wayne.
Let there be no mistake.
Rudd/Gillard Labor did not “save us” from the GFC.
They simply kicked the can down the road a couple of years.
And in doing so, all they have achieved is to dramatically weaken our government’s financial position.
Nearly $200 Billion in gross debt.
$20 Billion in “mortgage-backed investments”.
A $50 Billion budget deficit – that’s for this year alone.
A $50 Billion increase in our national debt ceiling, to $250 Billion.
And borrowing more than $2 Billion a week.
But look on the bright side.
When GFC 2.0 strikes, we’ll not need to worry about what’s hitting the fan.
Because thanks to Labor … and the banksters … we’re already in the ____ right up to our necks.
UPDATE:
For more shocking revelations on this story of bankstering corruption of the mortgage finance markets – and now even the courts of law – see this exposé by Rolling Stone’s Matt Taibbi:
The foreclosure lawyers down in Jacksonville had warned me, but I was skeptical. They told me the state of Florida had created a special super-high-speed housing court with a specific mandate to rubber-stamp the legally dicey foreclosures by corporate mortgage pushers like Deutsche Bank and JP Morgan Chase. This “rocket docket,” as it is called in town, is presided over by retired judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and labyrinthine derivative deals of a type that didn’t even exist when most of them were active members of the bench. Their stated mission isn’t to decide right and wrong, but to clear cases and blast human beings out of their homes with ultimate velocity. They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history …
And if you missed it, check out Matt’s infamous exposé of one of the big banks at the heart of the ongoing mega-fraud, Goldman Sachs:
The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates …
What you need to know is the big picture: If America is circling the drain, Goldman Sachs has found a way to be that drain — an extremely unfortunate loophole in the system of Western democratic capitalism, which never foresaw that in a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy …
Goldman Sachs is the puppeteer of our very own Emissions Trading Scheme leading proponent, former GS Australia chairman Malcolm Turnbull MP.
Barnaby Is Right 
That youtube link is unavailable here for some reason.
There is no doubt that our banks are setting us up for a US style housing collapse.They are willing to loan a couple on $150,000 pa with a $ 50,000 deposit over $1,000,000.Yes over one million dollars.
Prof William K Black was a financial regulator in the 1980’s.He used to jail people for the financial fraud happening today.He said that over 90% of the Fanny Mae and Freddie Mack loans were fraudulant yet they were onsold to our super funds as safe investents.Today no one has been charged with fraud let alone jailed.
The reason for our banks abandon of responsibility in loans is that they need assets to back up their now over $19 trillion worth of toxic derivatives.This is 16 times our GDP.They cannot be bailed out.
Our RBA has now started a fund worth $380 billion in anticipation of bank failures.We may soon see the RBA creating money not for the growth of our country but to create new Aust dollars from nothing,thus depreciating our currency so our banks can pay for their derivative gambling debts.
We are fools to think that a Cypus style collapse cannot happen here.