Government Cover-Up -- Secret $80 Billion Bailout

I am incensed… After what I’m about to tell you, you will be too. I was so mad after I read about this government cover-up that I wrote my representatives and senators in Congress. I asked them to take a stand against these underhanded actions.

If they don’t, they know what my vote will be in the next election.

I want you to do the same… I’ve provided a link to your senators’ and representatives’ contact information at the bottom of this article.

I don’t have high hopes that our elected official will do anything about this. You see, this cover-up proves what we’ve been saying all along. Government is in bed with Big Business, and their lies and cronyism has cost average Americans billions.

Here’s what happened…

In late 2008, the credit crisis was threatening banks around the world. In December, the Federal Reserve secretly loaned $80 billion to struggling banks through a program called ST OMO, or single-tranche open-market operations.

ST OMO let certain banks bid on loans from the Federal Reserve, and the banks were allowed to use mortgage-backed securities as collateral.

In other words, as Americans across the country were staring down the double-barrel shotgun of the Great Recession and the Housing Crash, banks were getting billions of dollars at absurdly low interest rates… They were able to hide just how broken they were.

Banks like Goldman Sachs (GS:NYSE) and 18 other institutions took out 44 separate loans in December 2008.

Sandy Franks and I wrote about Goldman Sachs in our book Barbarians of Wealth. The company has special relationship with the Federal Reserve and the government. We know that Hank Paulson was CEO of the company before he became the U.S. Treasury Secretary under President George W. Bush. We also know that the three CEOs after Paulson also left Goldman Sachs for government positions.

Up until now, the Federal Reserve refused to tell us about ST OMO. The names of the banks were kept secret.

We now know that some loans were granted with an interest rate of 0.01%. On a $5 billion loan, that’s chump change to a multibillion-dollar bank. Not even Senator Chris Dodd got such a good deal during his Countrywide Financial mortgage scandal!

According to the records, Goldman Sachs got $15 billion from the Fed’s secret program… the largest sum given through ST OMO.

It makes me sick… and angry.

What else are these guys hiding? How many of our hard-earned tax dollars have been invested in shams and lies?

I don’t mean to sound overdramatic, but these are the same guys that helped create the housing crisis. Goldman Sachs created subprime mortgage securities and sold them by the billions. But the company never told anybody that it was secretly betting against those same investments.

This is the same Federal Reserve that’s pumping up our government debt by the trillions with is printing press and bond buying programs.

Something has to be done.

(By the way, don’t forget to sign up for Smart Investing Daily and let me and fellow editor Jared Levy simplify the market for you with our easy-to-understand articles.)

As promised in the beginning of this article, here are two links to your representatives’ and senators’ contact information.

Write to them and tell them you don’t approve of how the Federal Reserve secretly handed out $80 billion in cheap loans.

Find your representatives here.

Find your senators here.

But there’s something else you can do, too.

You can come to our Money Crisis Survival Summit and learn how to protect yourself from the government and shady Big Business. These guys have already “stolen” 20% of your wealth with their self-serving policies and backdoor deals.

But the truth of the matter is, things are going to get much worse.

And it’s not just our retirement nest eggs that are in jeopardy… it’s our economic existence. Financial systems as we know them now could be forever changed in the coming money crisis. We’re seeing riots in Greece over $113 billion in spending cuts.

What do you think will happen if the U.S. can’t pay its debts?

We owe trillions of dollars to countries around the world. From China to Brazil to Germany, the noose is tightening. Germany’s been über-reluctant to lend a couple billion to bail out Greece. Think they’ll be likely to forgive $221 billion?

This crisis is coming, and our Money Crisis Survival Summit will offer you specific ways to protect your wealth, and will help you find pockets of prosperity to take advantage of.

We’ve just started sending out invitations to this Survival Summit. You probably received one on Monday. But in case you missed it, I’m attaching the invitation here. I urge you to read it in full. You should at least know what you’re up against.

I hope to see you there.

Editors Note: I was just handed the latest attendance figures for this year’s summit in Las Vegas… It is already our biggest event yet. It is proof investors are scared of what lies ahead.

At this point, there is no doubt we will run out of room and will have to turn attendees away. If you want to join us, don’t hesitate. The remaining spots will sell out soon. To learn more, follow the link.

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