It Is Time for a Tax Revolt

The PPIP program is going to be a much smaller program, and it is going to impact the health of the banks little. The banks still are weighed down with toxic assets. Meanwhile the US government has them on welfare, with Tarp being a small portion of that. The big banks can borrow at little interest and gouge consumers with high interest. Consumers are getting fed up with this as they feel that Geithner is subsidizing the banks with taxpayer money, while the consumers are getting the shaft from the banks.

The only answer is to walk away from credit, spend less, and deleverage yourselves since the government only wants to help the banking class. Take my advice at dontpaycreditcards.com and pass the info on to your friends.

Update: Banks are contemplating buying toxic level three assets from each other through the PPIP program. 1. They will be able to buy assets with borrowed money from the fed, with little downside risk. That risk will now be born by the taxpayer who is literally getting the horses behind in this deal. 2. They will be able to artificially bid up the value of these toxic assets, causing the taxpayer to be even more on the hook for any downside. My prediction that banks would do this is apparently coming true!

The government is saying that this PPIP program will likely be successful. But what if it is not? What if the taxpayers lose a whole lot of money and the balance sheet of the government grows weaker? What if oil and other commodities go through the roof in price because the dollar weakens? Then what? This could prove to be the scam of the century on the heels of all the other bank scams that occurred during the Bush administration.

On the surface Timothy Geithner is making a bold move to refuse to bail out General Motors unless their bondholders and creditors take a financial bloodbath. But the jerk refuses to require the big bank bondholders to take the same financial hit. It is relative peanuts to stop bailing out GM, Chrysler and Ford compared to what is required to bail out Bank of America, Citi-whatever-they-call-themselves, Wells Fargo and JP Morgan.

The fraud came from Basel 2 off balance sheet scam rules that allowed banks to keep risky assets off their tier 1 balance sheets. Well, why should taxpayers help the scammer international bankers and keep bailing them out without any bondholder responsibility? The corporate bank bondholders must be offered less than full value if the taxpayer is to come out of this alive.

I mean, the dollar could tank big time if this spending continues in the face of credit card defaults, commercial no-money-down-lax-underwriting defaults, and the wave of Alt A and Option Arm resets that are coming full force in late 2009 through early 2012! If you think gasoline cannot go back to 4 bucks a gallon just let the government spend on the banks like drunken sailors.

The only answer besides not paying bank loans is to stop paying income taxes. Now this is not for those who receive paychecks, but for those who control your own businesses, you can protest this wild government spending that can only mean big trouble down the road. But I am not a lawyer or tax advisor. This call is for a protest for those who can and know how to do so.

 It is likely that the scam banks could sell the toxic loans to themselves. They could set up a shell company, and we already know that BAC controls a huge amount of Blackrock. These companies could buy the toxic assets with the taxpayers on the hook, and the banks would essentially control their own toxic assets with the taxpayer on the hook for losses. What a scam. Geithner is setting up the scam of the 21st century! 

This liability of the taxpayer could approach another trillion dollars and the result of this would be a mother of all inflation and your gas would go up to 5 bucks a gallon if you are lucky.

While on the surface it is a bold move to put the creditors of the auto companies in their place, it is a grave injustice if the taxpayers will pay way more to bail out scammer banks. Think about it. We are being taken to the cleaners by Tim Geithner. Tax revolts, loan walkaways, calling congressmen, all of the above are necessary to stop this moronic and evil plan from coming to pass.