CNBC: Treasury's Secret 'Break The Glass' Plan

Must watch.

Just discovered this clip.  Broadcast December 1, 2009.

---

On April 15, 2008, the confidential plan, prepared by Neel Kashkari, is brought to Bernanke by Paulson.  Here is an excerpt from Sorkin's book with details.

Too Big To Fail: Confidential Break the Glass

Source - Andrew Ross Sorkin

New details about what was then a secret Treasury plan to save the banking system presented on April 15, 2008 — five months before TARP was introduced — to Federal Reserve chairman Ben Bernanke.  The plan, called the “Break the Glass” Bank Recapitalization Plan, was written by Treasury staffers Neel T. Kashkari and Phillip Swagel. The plan was the basis for the TARP proposal made in September 2008 after the financial panic began.

The “Break the Glass” plan contemplated that the government would buy toxic assets from the nation’s banks. It also discussed several other strategies for the government to help ailing banks using $500 billion of taxpayer money — including making direct capital injections into the banks. (The ultimate TARP plan called for $700 billion.)

Remarkably , the 10-page document discussed the pros and cons of buying toxic assets. Among the cons, the Treasury staffers identified two that continue to cause public outrage:

“Without a complimentary program, does nothing to help homeowners (for which there would be enormous political pressure)”

“No guarantee banks will resume lending.”

Up until now, the full “Break the Glass” document has never been discosed. The paper, which was obtained by the author during the course of his reporting for the book, was used as a source document in Chapter Five of Too Big to Fail: How Wall Street and Washington Fought to Save the Financial System — and Themselves.

Comments

[h5mind]

I can think of quite a few words to describe Hank Paulson and the jokers running the Federal Reserve, but "prescient" and "brilliant" are not among them. The fact they lied to, then stole from the American people (the 'have nots') to give to the 'have yachts', as Max Keisner calls them, does not make them "professional optimists", as Mr. Sorkin attests. It makes them criminals.

During the S & L debacle of the 1980's, more than a thousand bankers were imprisoned for transgressions a fraction as bad as what our current crop of banksters have gotten away with scot-free. There is nothing remotely praiseworthy for how the Fed and their lackeys in Washington turned a bad economic crash into a horrible one.

[SKINFLINT]

It was what you call a plan.

[Paris]

They are printing up worthless paper money and buying leins or physical assets, ie real estate.

They get something of true value, real estate, while the purchasing power of our dollars is diluted.

We're being F**ked again!

[Sagebrush]

They've been F**king us for a long time. It's long but I highly recommend watching it.

http://www.mrctv.org/videos/all-wars-are-bankers-wars

[Throb]

Is that like PNAC's "new Pearl Harbor like event" - they knew because it's their setup they ran it planning to "break the glass" after they broke glass steagle - friends - a multi generational criminal enterprise has embedded itself, and controls, our so called " theater" of government, our elections, corrupted our so called political class public servants and will not hesitade to trade a life for a profit.

Read Benjamin Freemans speech at sweet liberty. They showed themselves at Balfour, Versailles and administer the matrix. Hard to believe those thugs have completely thought this out - had they considered where their little path to avarice leads - they'd know it leads to a black hole maw of pain. They know their tombstones will become pilgrimage urinals - what kind of gypsy is foll nuff to believe some sacred force field will save him from a really pissed off mob of 300 Million Americans?

Ho hum ... the quality of gypsy stock, of late, is compromised.and lost all survival instincts .. again,