Someone explains how Bush's plan for a pseudo-bailout is very similar to the S&L scam of yesteryear:


"I warned you Bush was going to do another "Bailout" scam on the American taxpayers. Like the S&L bailout, it will be sold as saving poor families and widows and retirees and orphans, but in reality (and again just like the S&L debacle) be used to pump more money out of the taxpayers and into favored corporate and CIA pockets."
Here is how the scam worked.

President Bush (the elder) raised the limit on insurable deposits to $100,000.

Iran-Contra drug runners purchased legitimate small cash-based businesses, such as convenience stores, multi-screen cinemas, etc. and then blended the drug money with the legit proceeds from those businesses. After taxes, the money was deposited in $100,000 chunks in numbered brokered accounts at the target S&L.

Through a front company, the same druggies would purchase worthless land, run up its price with several flips or by using a compromised appraiser, then obtain a loan using the land as collateral.

The druggies have now borrowed back their original money, and since it is the proceeds of a loan, the money is non-taxable, cleaned, and ready to be spent anywhere in the world.

The front company was closed, the loan defaulted, and the S&L found itself with worthless land. The S&L then collapsed, and along came the Resolution Trust Corporation armed with a checkbook full of taxpayer dollars. And here is the beauty of the scheme. The druggies were still on the S&L books for their original brokered deposits, so even though they had already borrowed back their own money, the RTC writes them a check for their original deposit!

Using this simple scheme, CIA druggies (and other opportunists) could not only launder but GROW their drug money inside the US, with zero risk, and all on the backs of the taxpayers. This was the real scandal behind Whitewater, Flowerwood, Castle Grande, etc.; the scandal hidden by a stained blue dress.

So here we are today, a quarter of a century later. Bush the younger is in the White House. The entire US real estate market has been flipped up to over-valued high prices. Vast sums of money have been invested in the mortgage industry, then loaned out on land worth far less than the price paid for it. The lending institutions are starting to collapse, and once again a Bush rides to the rescue, and even though Bush is pointedly saying this will not be a bailout, that is exactly what it will be. And like the S&L debacle of the 80s, it will be sold as helping ordinary American families, but in reality is a repeat of the Iran-Contra/Whitewater/Flowerwood, scams. And your tax money, which should go to highways, bridges, schools and hospitals, is the prize!"