Kong Sez:

    After the ClimateGate e-mail scandal, you'd think people would learn something about the security of their e-mails, but they haven't. Now we learn the truth about another one of the multi-billion-dollar bailouts, and from the e-mails of our sacrosanct Secretary of the Treasury, Timothy Geithner.

    Get a load of this one, folks, taken from Porter Stansbury's S&A Digest of January 7, 2010, and ask yourselves what it's going to take to make people rush for their pitchforks and torches.

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By now, you'd think powerful and important people would have learned not to put anything incriminating into an e-mail. Once you shoot something into cyberspace, it's out there. And it will come back to haunt you...

Former Countrywide head Angelo Mozilo took the fall when the SEC leaked his e-mails explaining how terrible the mortgages his firm was peddling were... He called the 100% loan-to-value subprime mortgage "the most dangerous product in existence." He went on to say, "In all my years in the business I have never seen a more toxic prduct [sic]."

Matthew Tannin and Ralph Cioffi, the former managers of the two Bear Stearns hedge funds that failed in 2008, were also indicted, partly due to idiotic e-mails they let slip about the condition of their funds. In one e-mail, Tannin wrote, "If we believe the [collateralized-debt obligation report] is anywhere close to accurate I think we should close the funds now. The reason for this is that if [the CDO report] is correct then the entire subprime market is toast. If AAA bonds are systematically downgraded then there is simply no way for us to make money – ever... Caution would lead us to conclude the [CDO report] is right – and we're in bad bad shape."

Later, Tannin followed up with, "Believe it or not – I've been able to convince people to add more money."

Despite the previous examples of his brethren, Treasury Secretary Tim Geithner, then president of the Federal Reserve Bank of New York, was also busted sending shady e-mails. If you need more proof the government doesn't exist to look out for your best interests, here it is...

After bailing out AIG, Geithner told the firm to withhold details from the public about its payments to banks during the crisis. According to AIG's regulatory filings, the insurer paid banks – including Goldman Sachs – 100 cents on the dollar for credit-default-swaps (CDS) they bought from the firm. I don't remember the exact market value of CDS at the time, but I guarantee, in the midst of the worst financial crisis our country has experienced since the Great Depression, bundles of mortgage debt were not valued at 100 cents on the dollar.

Congressman Darrell Issa, ranking member of the House Oversight and Government Reform Committee, obtained Geithner's e-mails. In total, the Fed decided Goldman and more than a dozen other banks would be fully paid for $62.1 billion of CDS.

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Kong Sez:

    Remember the e-mail scandal during the late, great Tech-stock Bubble, when one of the major stockbroker's e-mails were published, in which he called some of those high-flying tech stocks "dog-sh*t" stocks?

    Looks like some of these carefully engineered "financial instruments" were nothing more than "horse-sh*t" paper investments. And when those investments collapsed and we-the-people had to bail out these losers, our illustrious Secretary of the Treasury carefully instructed these miscreants not to tell us what our money was spent on, because we might get mad!

    We don't know about you, but we here at the ChemBio headquarters are already mad! The more these truths emerge, the madder people will get. It won't be long before they start stockpiling torches, pitchforks, and nasty signs, all in preparation for a great march on Wall Street and the beginning of La Revolución!

    People are mad folks...really mad....we hear from them every day! It won't be long before they take some sort of action.

    If the economy keeps cratering, then we have a situation building in which the people are left to become angrier and angrier, until finally . . . La Revolución !

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Viva La Revolución !!!

    "Is it a rebellion?" asked Louis XVI of the count who informed him of the fall of the Bastille.

    "No, sire," came the reply. "It is a revolution."

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