Bailout will be followed by Sellout

The Paulson bailout is part of a plan to sellout Wall St. to foreign investors. These investors are demanding that the toxic assets first be removed from the books before they rush in to buy up American financial companies at bargain basement prices.

This is the real purpose behind the $700 Billion plan. It is being forced on us by Chinese and other foreign investors. This is a stealth IMF style austerity plan. Paulson is trying to make it look like the US is doing this voluntarily, but actually the terms are being dictated by foreign governments.

So where am I getting these crazy ideas from, or am I just spouting garbage? Well take a look at these quotes buried in the financial news.

Excerpts from "Qatar fund spurned Wall Street" in Gulf Times on September 26, 2008.

A leading executive of Qatar’s sovereign wealth fund has disclosed it had spurned the chance to help re-capitalise troubled Wall Street banks, in remarks that offered a rare insight into its investment strategy, according to the Financial Times of London. Kenneth Shen, head of strategic and private equity at the Qatar Investment Authority, said on Wednesday that the QIA had got “an early look” at potential investments in the US banks but declined the offers. He told a Hong Kong conference: “From where we stood it was too early (to invest) from a timing perspective. It was clear to us that we were coming down the curve.”

They suggested the QIA was likely to become more active in the US market when the US government’s bailout of Wall Street is completed. Both Morgan Stanley and Goldman Sachs are believed to have been looking for Gulf capital and to have talked to the QIA. The authority, however, has been very cautious, waiting for more clarity on the terms of the US government bail out.

Excerpts from "Rich with Cash but Short of Talent, Chinese Bankers Eying Wall Street" in China Stakes on September 25, 2008.

Wall Street is undergoing a reshuffling, and assets are on the table for financial firms of other counties to pick up. Japan-based Mitsubishi UFJ and Nomura Securities have already made moves. Will cash-laden Chinese financial institutions follow them in?

Perhaps not, at least for the moment. At present, most Chinese analysts say it is “still too early” to acquire Wall Street assets with the whole US financial system still a-roil and the Treasury and the Fed also having difficulties getting Congress to approve a $700 billion bailout plan.

Most Chinese banks think conservatively, believing it will only be safe to enter Wall Street on condition of the US government’s approval of its $700 billion bailout plan and clear solutions to the problems of the big financial firms. They see no advantages now on Wall Street except for low prices and a whole market that is weak and lacking powerful support.

Holding percentages for Chinese banks in acquiring stakes in overseas financial firms, and whether they can gain the right to control and manage them, is still a problem. Jiang Jianqing emphasized ICBC is looking to be a strategic investor, and not merely a financial investor, in its overseas investment.

So you see Paulson is just setting the stage for the huge sellout of American assets that is coming next. Of course his friends back at Goldman Sachs will benefit enormously from these transactions. While the American taxpayer will be left holding the bag.