Wednesday, July 19, 2006

SOROS AND ME!
PART VIII

THE TRUTH ABOUT THE WAR ON TERRORISM-HOW TO DISMANTLE THE MILITARY INDUSTRIAL FINANCIAL MEDIA COMPLEX?

By: Alex S. Gabor


This will be my last article on the subject of Soros and Me! After seven articles published independently around the world I had the great honor of being quoted in London’s Financial Times, and getting some terrific responses from an audience I didn’t know I had, particularly as it relates to my last article on America’s Fannie being Spanked.

My idea of creating a documentary about Soros and Me! has fizzled due to a lack of finance, as usual. George Soros’ spokesperson, Michael Vachon, will be glad to hear it. On the other hand, some historians may revisit my articles and delve deeper into my troubled life and realize that I was really a good man after all, but I won’t hold my breath. The prospect of my character being completely assassinated after this article does not scare me, it terrifies me, but I must write what I know to be the truth, and have the courage to accept the consequences.

I once had the notion that if I could get Bill Gates, Warren Buffet, George Soros, and nine other billionaires all in the same room together to listen to what I had to say, we could then proceed to change the whole future destiny of the entire world.

I have abandoned that notion along with my delusions of becoming the world’s first trillionaire, the subject of a book I may yet some day find the time to write about.

I’ve always been a hopeless utopian altruist at heart. In some of my past business dealings I used to ask prospective business associates what they would do if they had a billion dollars in cash at their disposal. I got some very interesting responses, but none of them matched my visions. My lifelong vision has been peace. World peace. A peace where there is no fear, no terror, and no violence.

After being clean and sober for 22 months I have come to the conclusion that those were delusions, imaginary yearnings to be free of the horrors of war, to be relieved of the stresses of conflict, and that the ultimate serenity available to me could only be found through death.

This world and the universe it shares are very violent. Nature is violent. Man’s violent nature cannot be tamed by violence and reason sometimes is ineffective in reaching an insane society in trying to make it rational. Just try talking to a mad man once and you will forever understand.

Then try talking to ten thousand bloggers who are hell bent on one side or the other on the issues of war, terrorism and the use of violent force to get one's beliefs, ideas or ideology across to any side that disagrees with it.

Yet there are still some people left in this world, writers, philosophers, philanthropists, perhaps altruists like myself, who continue to seek ways to improve civilization, to make life less violent for those who come upon this world after us, who have risen above the crowds of force worshipping war profiteers who are addicted to a permanent war economy, and who may take into consideration the truth about the so called “war on terror”.

Despite the clogged court system, I have always believed that going to Court would be better than taking lives, no matter what my former friends who now imagine themselves to be my personal enemies might consider to be the truth. The easist thing to shift is a viewpoint, and the most fallable of human weapons is the mind.

One person who, albeit his age, is still seeking ways to improve society is my adopted uncle George Soros, and I have always said, “everyone should adopt a billionaire”, they sometimes are very lonely people who are often misunderstood, or at the very least, jealously regarded because of their past performance in exercising their truly incredible talent in bringing about their own abundant wealth. They are so rare, there are less than a thousand of them throughout all of history.

Soros has been quoted in many places around the universe of the media on the subject, stating in effect that, "In the U.S. 'war on terror' is used to cover a multitude of sins. It is a false metaphor. 'Counterterrorism' is more honest."

In many quarters, particularly the far right neo Nazi fundamentalist Christian fascist strongholds of America, (I'm talking Skinhead country and LA County Jail) and the other far right Jewish Socialist sadomasochistic cabals of Israel, (I'm talking Mossad and other secret military societies around the planet read that as CIA, MI6, KGB, INTERPOL), in what the mainstream media has labeled extremism as quoted by the G8 summit statement on the recent events unfolding in the Middle East, the tactical use of character assassination has evolved into an effective painfully long drawn out torture mechanism for the living, often more powerful than any real covert assassinations., which are usually swift and relatively painless.

You have to be aware enough to know that you have lived before this lifetime to understand the real meaning of this, but suffice it to say, you can kill the body of a man, but you cannot destroy his soul, and you can attempt to destroy a nation by force, but you cannot kill the spirit of a nations visionaries, artists and creative people.

It is one universal law that no man can violate, as obvious as gravity to those who keep their feet on the ground and their heads out of their posteriors.

Character assassination is an intentional attempt to influence the portrayal or reputation of a particular person, organization or nation, whether living or historical, in such a way as to cause others to develop an extremely negative, unethical or unappealing perception of him or her.

The damage sustained can be life-long and, in the case of the historical larger than life personalities like Soros and me, it can last for many centuries. Surely I do not jest.

When it comes to Soros and Me, we have both suffered at the hands of those who do not seek the truth, care nothing for it, and in fact assassinate it all too well in their process of worshipping their true gods of war, greed, power and the ability to dominate the lives of others without the permission of the governed.

It is a form of force with worse than deadly consequences and is a tool of war. It has also evolved into the sophisticated realms of psychopolitics and brainwashing.

By its nature, character assassination involves the deliberate exaggeration or manipulation of facts to present an untrue picture of the targeted person, organization, nation or subject. One can just as easily assassinate a philosophical subject or religion as another human being or group. The mechanisms are the same.

For many individuals, this is an act of terrorism in its most viscious and ruthless form because they can be alienated from their families, their business, their communites and even their entire country.

The whole world may look upon someone whose character has been assasinated as evil, to be condemned forever to live out the rest of their days in lonely solitude, deprived of all human dignity and rights, or they can become fodder for all manner of overt or covert military, financial, media or legal harrassments.

It is very difficult to erase, reverse or even rectify, particularly if you cannot afford the time and money it takes to undo the damage such acts cause in this world of instant mass global communications. In some instances, no amount of time or money could possibly ever repair the damage caused.

Therefore, the process is aptly likened to a literal asssasination of human life. Only those who have had their lives dealt a blow in such a fashion can understand the deep levels of depression one can experience as the side effect of such operations upon the human psyche.

Assassination is the deliberate killing or destruction of an important person, organization, nation, culture, or entire civilization, which is akin to genocide, and both have the same underlying intentions to destroy an opposing entity. When it comes to individuals, it is usually a political figure, or other strategically important individual that becomes the target.

For some who have experienced character assassination, it would perhaps in their own estimation have been less painful to have been murdered than to have to continue to live with the knowledge that those who know them look upon them with scorn, contempt and disgrace. Especially when the truth is so close to the heart but so far from the minds of the public.

Perceptions of wrongness and badness are more easily taken for granted in a closed and suppressed society than in an open, honest and free one. Bad news usually travels faster than good news, especially in the mainstream media.

This negative impact on human life and the characters which play upon its stage may be one explaination for some of the more common escape mechanisms used by people experiencing character assassination such as suicide, drug or alchohol abuse, and even creating, joining or hiding in underground secret cabalistic societies, afraid of thereafter being discovered.


Changing one’s name, although a temporary solution, sometimes provides temporary relief and some minor solace. In the long run, death is the ultimate absolution for the victims of character assasination. Too many have been driven to suicide as a result. The ultimate injustice is dying with false labels and untruths attached to your character for all eternity.

Those who succumb to revenge, vindictive retalatory acts, and general malice toward the character assasin, usually are of the opinion that they have nothing to lose by killing, maiming or somehow destroying those who have attacked them. This however only serves to feed the fire, building up the subsequent consequences of the death domino sequence of events which follow on the heels of every murderer alive in this world today.

Most of the time the assassin, one who carries out an assassination, or the assassin’s employer, is portrayed as an individual. In truth, most if not all assassinations require the cooperation and coordination of more than one individual. One must coordinate times, dates, locations, tools, methods, transportation, fuel, and various logistics to execute any assassination.

One must indoctrinate the assassin. The technology of assassination, whether by negative publicity, or physical attack, is like a viral infection upon the whole of global civilization, which has left no political or religious group unscathed in its permeation of the bodies which seek to survive despite its rampant pandemic.

In both forms of assassination, it takes corroborative efforts to get the intended result. One person may make a statement, but when many say it, it becomes truth according the world of the international media. Wikipedia has a policy of not accepting or recognizing data or truth unless it can be corroborated by an outside source.

It only takes two or more people to spread a false rumor about someone or something that is "bad" for it to take on life of its own. This is the essence of evil, the opposite of "live", which gradually tears apart the life of the target of the rumor, unless the target truly understands what is being done to it. Only then is knowledge, wisdom and love capable of bringing about peace for the person or group being attacked.

But such things are a rare commodity, worth more than all the material riches of the world, because in the end, only truth brings about understanding and only understanding brings peace and love.

The front person, if the assassination is successful, is usually the one who get’s the brunt of public scorn in the form of a public trial, or in broader political terms, negative ratings in opinion polls. The accomplices are almost always invisible and intentionally so. They live on to die another day.

All assassinations involve a political or idealogical agenda coupled with the belief that there is no other way to get ones point across to the opposing party than through the use of force, usually always a false belief, particularly when confused with religious or strong psychopolitical convictions.

Character assassination is a subtler, lower harmonic wavelength of force, but nevertheless, the target, and his associates are forced to receive false perceptions of himself, sometimes resulting in the target actually going insane or having a psychotic break under the pressure of injustices melded upon him by the assassins.

At the very least, the false, negative and deliberately destructive information taints the perceptions of business and family associates against the target, resulting in a general lowering of esteem.

A suicide bomber is nothing more than an assassin acting as a brainwashed psychopolitical tool of the idealogy that motivates it to use force. It does not matter if that individual assassin appears to be acting alone, or acting as the head of an entire soveriegn nation with the full support of its own political leadership, the only difference is the impact and consequences are of different orders and degrees of magnitude.

An assassin under the color of law or the political idealogy of democracy is still an assassin and is no less guilty than a suicide bomber under the belief that he will enter heaven sooner if he executes his intent to destroy and harm others.

Some motivations behind assassination, whether by character or physical in nature, can include money, power, greed, or an aberated sense of superiority over other human beings, as in racist or cultural wars.

All wars start with an assassination whether by character or by physical brutality. Even kidnapping is a form of assassination in that the path of life upon which the kidnappee was on is disrupted, with a resultant damage to the friends and family who suffer the loss of the victim.

Physical wars usually result only after a long period of character assassination has succeeded in convincing an army of opponents to fight and destroy the “enemy”. It takes a lot of "training" to convince a human being that it is "right to kill another human being". The indoctrination is a process of assassinational education taught by all the military and police academies of this planet.

In order to hurt someone, we must first believe they have done something wrong, or in some way pose a threat to our own existence. This applies equally on the macro level as well as the micro level. The belief creates fear which in reality is actually false evidence appearing real. FEAR. False Evidence Appearing Real.

We wouldn’t hurt a fly if we didn’t think they posed a threat to our survival, but if they begin to destroy our fruit, we find all kinds of chemical weapons to wipe them off the face of the earth. Likewise, one nation would not consider nuking another nation unless there was a strong belief, usually false, that someone was going to strike first.

Underlying all desire to kill another, whether by assassination or war, which is more or less mass assassination, is fear. It is a basic fear of being destroyed first by that which is feared. If the fear is overcome, the destroyer feared is destroyed without assassination or physcial harm. That which is loved cannot hurt us. Only that which is feared comes after us until it consumes us.

To continue any conflict, whether it be a war, an argument, or some form of controversey, lies or false information must be introduced into the relationship in order for it to remain unresolved. It does not matter if the relationship is between two or more individuals, two or more organizations, companies or enterprises, two or more nations, or perhaps in the not too distant future, two or more planets. Only the truth examined by all sides can resolve conflicts. This is very difficult to accomplish in the presence of embedded lies and prejudices which perpetuated the hostilities in the first place. Only the greatest statesman are able to rise above the petty squabbles and teach those who are fighting the truth.

In order to continue the conflict, the beliefs or information between the parties to the conflict must contain some form of falsehood to remain perpetuated. If the truth were discovered and made known, the conflict would be resolved.

This is why counter intelligence fails when its’ cover is blown. It is also why counter-terrorism is a more accurate description of what the “war on terror” and its many facets, are all about.

In most political operations, the most common forms of character assassination are the spreading of usually false allegations that a candidate is a liar, is in some way dishonest, that they’re in some way a bad person, have a bad family life, are in an abusive relationship, have a criminal history, are a convicted felon, perhaps going so far as stating the person abuses their children physcially or sexually, is desrespected by his co-workers, or routinely engages in some highly exaggerated yet seroiusly disturbing , socially unacceptable behaviour, such as sexual deviancy. These are usually targeted specifically toward an individual.

On an international level, as used by modern governments as instructed by their higher up financial controllers, the more common modern forms of character assassination include the labelling of another country as an enemy, enemy combatant, terrorists, an axis of evil, an evil empire, a host for terrorists, or other negative connotations that invoke fear and loathing in the minds of political opinion leaders who would act on the false information by allocating energy, time, resources, and various other destructive tools toward creating and perpetuating an attack on the target.

No one can start a war unless we first assassinate the character of the nation upon which war is eventually declared. This must be done by instilling fear in those who have the power to cause a war to be started.

It must be done in a continous stream of lies and spun stories that reaffirm the false correctness of the intent to war, and once commenced, the rightness of the decision makers who allowed the war to begin, or who seek to profit from its ongoing maintenance, operations and persistence.

It is harder to retreat from a path of violence once started than to admit ones fallability and errors and humbly seek forgiveness for the taking of human life, because it is most difficult for those who have been hurt to forgive.

The more debase motivations for assassination are revenge, acts of espionage at the request of a government, or the practice of creating a false front as in when the assassin, in order to gain sympathy for his cause, shoots himself in the foot and then claims someone else did it, thereafter directing all attention toward an imaginary and thereafter unjustly persecuted enemy, giving the assassin time to effect his real plans, whatever they may be.

In practice, character assassination usually consists of the spreading of rumors and deliberate misinformation on topics relating to one's morals, integrity, and reputation. It is also called counter-intelligence. And by any other name, it is usually done in secret, and with the intent of never revealing the source of the information because the truth would destroy the operation of the assassins.

The only difference between character assassination and physical assassination is in the latter, the operation ends in the death of the target, whereas character assassins must continually engage in spreading rumors, planting false information and perpetuating the false perceptions of the target.

Such operations usually cost lots of money, particularly when it involves the assassination of an entire nation, culture or civilization. The most closed societies have the highest amounts of funding for covert secret operations and counter- intelligence activities.

Since the beginnings of the history of man, there have been wars. There have been wars on poverty but poverty still exists. There have beeen wars on drugs but the drug epidemic has become an international business which also uses the main tool of war, assassination, to maintian its own existence. This brings us to the truth about the “war on terrorism”.

A “war on terror” is an oxymoron much like military intelligence. It is not intelligent to use force, just like it would not be intelligent to attempt to knock down a wall with one’s bare knuckles by punching it. One get’s hurt.

By its very nature, war is terror. If we were to say we are now having a war on war and all people who engage in war must now be killed, we are not solving the problem and war does not go away because force, as always, begets more force. If you punch the wall, it will punch you back without even having to move. Its automatically a damaging situation to your hand.

Some humans of lower intellectual and intelligence capabilities are incapable of connecting dots. They do not see the higher powers and forces of the universe at work. They tend to ignore natural laws such as force begets force, or for every action there is an equal and opposite reaction. They can only discredit the truth because by their very nature as assassins, they must defend their beliefs and actions with more of the same.

Terrorism refers to a strategy of using violence, or threat of violence to generate fear, cause disruption, and ultimately, to bring about compliance with specific political, religious, ideological, and personal demands. Coercion, blackmail, monopolies, unfair trade practices and corporate espionage are forms of business terrorism. The effect is the same, to disrupt and ultimately destroy the opposing target.

Like poverty, drugs, and disease, terrorism has been around for untold millennia.
You cannot force poverty out of existence with bullets, bombs or more deficit spending. You cannot force a criminal to behave by beating him up.

You cannot force people to not take drugs, particularly if you terrorize them with threats of character assassination, by labelling them criminals, or incarcerating them , another form of force. If you surround someone with walls, they cannot escape and are forced into a position that they would not otherwise voluntarily execute on their own.

You cannot elimate disease by beating up the patient that is sick. You cannot end terrorism by creating a police state and invading foreign nations. Hitler, Mussolini, Roosevelt and Truman all proved that once and for all not so long ago.

The “War on Terrorism”, “War on Terror” and the "Global War on Terrorism" are literally three prongs of a global public relations campaign invented by the military industrial financial media complex and is supported by several NATO members and other allies.

It is a global psychopolitical operation designed to dupe unsuspecting people from all walks of life into fearing terror, terrorism, and terrorists. It actually perpetuates more terror. The political leaders who are quoted by the mainstream media did not mastermind this campaign.

Frankly our political leaders are not intelligent enough to have come up with such a sophisticated plan to brainwash a third of earth’s population into believing that one can end terror by becoming a terrorist.

Our political leaders are only the greatest mouthpieces of that which is really behind this global campaign against terror, and on occaision such leaders make themselves look like fools in front of the media deliberately in order to confuse the general mass populace of billions of people who watch or follow them on televisions and computers around the world. Their stupid mistakes on camera actually give rise to a human element in the perception of the global audience. But make no mistake, anyone who is engaged in any form of war is a dyed in the wool hired assassin.

Although the campaign’s stated goal is ending international terrorism by stopping those groups identified as terrorist groups, and ending state sponsorship of terrorism, its’ real goal is to fuel, maintain and perpetuate what I refer to as the Octodragon.

One could most easily liken it to the Borg on Star Trek, but the Borg is actually only another result of the Octodragon, even though it is a science fictional metaphoric version of its manifestations.

This brings us to the real question of this article, how do we as sane rational human beings dismantle the military industrial financial media complex, which I prefer to call the result of the Octodragon, without becoming engulfed in the policies, consumed and brainwashed by its’ beliefs, and act wittingly or unwittingly in the ongoing operations and distractions of the Octodragon?

If you keep Googling “Octodragon”, the answer may very well soon appear.

Copyright © 2006 By Alex S. Gabor. All Rights Reserved.

Sunday, June 25, 2006

Economic Epiphany


SOROS AND ME! PART VII

AMERICA’S FANNIE HAS BEEN SPANKED-BUT ITS’ NAME IS MUDD!

By: Alex S. Gabor


My great adopted uncle George Soros has been accused of all kinds of wrong doing, and like me, he may have a few streaks of mischief left in his acute mind. Soros actually means “sharp” in Hungarian and he has always lived up to his name as have I to mine.

If not being criticized for “breaking the bank of England”, condemned for “causing the Asian financial crisis”, or being attacked by Neocon Nazi far right fundamentalist Christian fascist political forces for donating millions to the causes of open society, he might soon add the collapse of the US real estate market as the final feather in his long capped track record of making billions from the misfortunes of others’ miscalculations and misperceptions of the reality in financial markets.

Soros, earlier this year predicted a total meltdown in the real estate markets beginning some time in 2007. This author on the other hand published his article “The Real Estate Bust of 2006” last December.

The stages for those perceptions have been set as America’s Fannie has been spanked with $400 million in fines, only the beginnings of turning inside out the entire ponzi scheme of American real estate finance.

Criticism levied at the mortgage finance giant after an $11 billion accounting scandal is fair and remains ongoing into the far foreseeable future as the onion is peeled away by Congressional investigators and greater public scrutiny. By the time real honest accounting is done, Fannie will be trading in the pennies. That idea scares many in Congress.

The Fannie Mae of years past may have made substantial changes and may not appear what it once was, but it continues to operate a massive ponzi scheme using funds from foreign investors to maintain its’ illusions of profits for its stockholders.

The only difference between Fannie and Enron is that the international markets perceived the truth about Enron far too quickly but is yet to discover the whole truth about America’s Fannie, which is still encrusted with the dark forces of fraud.

On the surface, America’s Fannie has a new face, as its’ new Chief Executive Officer Daniel Mudd attempted to sweet talk Congressional leaders during his appearance on Capitol Hill.

Redirecting attention away from the truth is one way in which criminals are able to perpetuate their schemes that ultimately wind up being exposed by those who know better and can profit from shorting FNM and the entire real estate industry during the next several years.

George Soros didn’t hire me to write this blistering article, nor am I being paid to do it. I write it because in my honest opinion it is time for the global finance people and those central bankers who keep feeding the Octodragon that is destroying our planet to wake up and realize that they too are being conned by a system that is nothing more or less than the greatest ponzi scheme ever invented in the history of man.

A Ponzi scheme that happens to be poetically known as the Fannie of America which is now headed up by a man whose name is literally Mudd.The company has gone to great lengths to lower its profile and take a more humble tone. America is trying to hide its Fannie from the rest of the world, but its nakedness is about to be exposed and laid bare for the entire planet to scorn and laugh at because in truth, the entire system is a complete fakery and mockery of the American dream, while America continues to sleep at the wheel, the rest of the world sees the light of a new dawn, and the American nightmare is foisted upon us all.

The bubble has already popped. The gas being let out of America’s Fannie, like some embarrassing moment at the global trough of abundance, is being sidestepped with political rhetoric and doublespeak, and although many politicians are blushing, it is those who see the real opportunity that will be laughing all the way to their foreign bank accounts.

Individual Americans’ collective wealth has ballooned to $54 trillion according to the Bernankeular of the Federal Reserve. What’s a few trillion vanishing dollars to a pump and dump scheme so sophisticated it takes an axe to peel away the rubric that poses as facts before the global financial markets?

America as a sovereign entity owes $10 trillion to foreign banks and investors. But its’ homeowners, who think they live the American dream, owe another $10 trillion in real estate loans, 50% of which is controlled by America’s Fannie and her nightmarish brother Freddie, the one that has no Krugerands.

According to the stats reported by the U.S. Treasury Department, America's first 42 Presidents, from George Washington (1789) to Bill Clinton (2000), borrowed a combined total of $1.01 trillion from foreign governments and financial institutions. From 2000 to 2006, the Bush White House has borrowed $1.05 trillion alone. We as a nation have borrowed in the last 5 years what we had previously borrowed in the first 211 years of our country.

Those stats in fact are false and misleading. The real number is closer to $10 trillion, while the national debt was around $6 trillion and budget surpluses were on the horizon when Bush took office; it is now close to $9 trillion, with the debt ceiling having been raised twice, meaning that Bush has already borrowed about $3 trillion to finance his “war on terror”.

That means the American Ponzi scheme has mushroomed and is now at its peak. The interest paid to prior investors on Treasury Bills was funded by simply borrowing more and more each year from foreign investors. But foreign investors are realizing that the Ponzi scheme cannot go on forever, and despite the negative impacts to their own economies, foreign governments, aside from their distaste at America’s arrogance in military matters, are beginning to tighten their belts.

China is now taking steps to rein in its’ hyper inflationary annual growth rate of 30% by cutting off the supply of money to its banking system and the construction industry that fueled the double digit growth rates of the past decade.
The impact of this will limit the amount of money available by the Chinese to keep fueling the American ponzi engines, namely Fannie, Freddie and the Treasury bond markets, driving the US dollar ever lower, and pushing Treasury bond prices toward junk bond status.

Foreign perceptions are now coming around to realizations that it is very risky to invest in an America that cannot keep its Fannie clean.

Some readers may be asking, what does this all have to do with the writer and George Soros?

In 1993, when I first read about Soros and how he made a billion dollars in one day, I realized that he may have taken his profits in a certain week after the Bank of England managed to persuade the British Parliament not to join the European Monetary Union, but that the planning and strategic decision to short the British Pound had to have been made months, perhaps even years before, and the amount of money necessary to amass to make that kind of short sale took tremendous confidence in a single money manager who had already proven his track record numerous times in prior trades.

For the next ten years I studied how this one man, as a result of his financial prowess, had funneled billions of dollars into organizations which helped topple repressive governments, and bring about greater freedoms in societies which had previously been closed.

America is and continues to be run by a repressive government that is so closed and secretive, that anything it does wrong is hidden behind the guise of national security.

As a result of my research I began to develop a prospectus based on the European model of issuing bearer shares and allocated a large portion of those shares to Soros himself.

After two 10 for 1 forward stock splits and hundreds of variations later on the development of that prospectus, if a market had developed for those shares, both Soros and I would have been the world’s first trillionaires.

The goal of the business plans and operations were to create a financial system that didn’t bear interest, not out of some religious context, but from a sound economic basis going forward; it was plainly self evident that any system which kept borrowing to keep alive was doomed to failure.

Oddly enough, the financial markets could still make money without charging interest, but that is not the subject of this article.

The plan included gradually replacing America’s Fannie with not for profit international organizations organized in 50 states, 10 provinces, and 32 foreign countries that lend money for housing at zero interest, changing the Federal income tax laws to encourage rapid debt repayment instead of mortgage interest deductions, and generally building a “free and clear” global society.

The main argument for such an endeavor being the answer to the simple question; why would any rational human being borrow money from himself and then charge interest to himself when the money was created out of thin air to begin with?

Most people who had read and understood the prospectus agreed wholeheartedly and went so far as to enter into agreements with my organizations to further their own and society’s best interests.

But it became such a great threat to the current financial system, despite its proposed solutions that would have limited any damage to the stake holders, namely America’s homeowners that I personally became the target of the very government I was seeking to assist.

While the House Financial Services Committee Chairman Michael Oxley appropriately called Fannie "the Enron of the financial services industry," and the U.S. Treasury Department is currently ramping up its public campaign to push the Senate to act quickly to deal with the implosion of Fannie, the prospectus, which is lost in obscurity somewhere in cyberspace, had called for a merger between Fannie and Freddie and a subsequent decriminalization and a gradual deprofitization of the mortgage operations of America.

In true Christian parlance, this was known as “throwing the money changers out of our homes”.

Unfortunately, certain vested interests got hold of the prospectus and the SEC, on the very same day that it went after an illiterate visionary who actually filed a prospectus for TOKS with that regulatory agency, a company whose business plan included a plan to consolidate the entire Fortune 500 into one company, filed a civil action against me and my company, Penny King Holdings Corporation that left me both emotionally and financially devastated. Another chapter to be dealt with later.

Three years later, I am writing this column called “Soros and Me!” still in hopes that somehow, George Soros, whom I have never met face to face or spoken with, will contact me and discuss how we might together still co-create an open free and clear American society.

Perhaps hope in me springs eternal.

In the book Buffettology, about Warren Buffett's approach to investing, a passage illuminates clearly Fannies problems when compared to another troubled company in America: "The phenomenon of a company growing only because money is being borrowed can be seen in the financial records of the General Motors Company, which indicate that between the beginning of 1985 and the end of 1994 it earned in total, approximately $17.92 a share and paid out in dividends approximately $20.60 a share.

"During this same time period the company spent approximately $102.34 a share on capital improvements.

"The question that should be running through your mind is, if General Motors' earnings during this time period totaled $17.92 a share and it paid out as dividends $20.60, where did the extra $2.68 that it paid out in dividends and the $102.34 that it spent on capital improvements come from?"

The answer: GM borrowed over a hundred billion dollars during the same period and has never paid it back, probably never will.

Smart investors who seriously delve into Fannies deeper crevices will be able to discern a similar pattern of behavior, the only difference being that Fannies product is annually inflated paper assets sold to foreign and domestic institutional investors.

Since December of 2000, Fannie’s stock price has lost almost half of its value, falling from $90 to $47, dividends have been cut in half from a high of .52 per share in October of 2004 to .26 in the latest quarter, and the number of institutional investors holding the stock for the long term continues to diminish.

Mudd keeps saying that Fannie is not "unethical." "I don't think as a broad characterization that this is an unethical company. I think it's a highly ethical company that's motivated by a lot of different things that include a valuable and important mission."

It is mainly motivated by money because that is its’ product. Affordable money to the housing markets in America, but if that product is artificially inflated, it becomes a very destructive product in the long run.

Its’ mission is supposed to be affordable housing for 300 million Americans. In that mission it has utterly failed.

Instead, America’s Fannie has lined the pockets of a few former managers, all of whom have not been held to account like those at Enron, all the while maintaining the front that it is a good ethical company, much like Ken Lay who “didn’t do anything wrong”.

Mudd said Fannie has rebuilt its management team and that 44 of 55 of the most senior managers are in new positions or are entirely new to the company. It has overhauled staffing in its finance division and hired thousands of contract employees to conduct the earnings restatement.

It didn’t take thousands of accounting professionals to pierce the veil at Enron, in fact thousands of accounting professionals lost their jobs because of Enron and it is highly likely that thousands more will lose them because of Fannie.

Yes, I am predicting the collapse of America’s Fannie.

Fannie also paid close to $100 million in bribes and political contributions to various political consultants, lobbyists, and political organizations over the past decade to keep their Ponzi scheme from being overly exposed. So sue me for exposing America's Fannie? The prospectus did in fact do that.

Fannie, according to its own false public statements, has apparently restored its capital and improved its relationship with regulators, agreeing to a $400 million fine and a cap on growth in its investment holdings.

This cap basically is the trigger that cuts off the limitless spigot of growth that has fueled real estate prices in America for the past four decades. A major shift in policy. When the dust finally settles, remember this article and the others written on the same subject by the same author.

Mudd has disagreed with a memo from an analyst with the Republican Policy Committee which said the CEO himself was at the center of a "corporate strategy" to misrepresent Fannie Mae. Mudd is protecting his position and future earnings. He gets paid a base salary of $2 million a year, not counting stock options and other perks.

Fannie, like Freddie, is owned by shareholders but charged by Congress with supporting housing by keeping money flowing in the mortgage market. Congress didn’t realize that by allowing Fannie to operate as a for profit enterprise that greed would eventually take over and cause America to increasingly pay more and more for housing and ultimately bring about the demise of the entire housing industry. They should have known better.

Fannie and Freddie have strayed from their missions. The companies do not lower mortgage rates for homebuyers, if at all. They both act as a monopoly on rates when rates on housing finance could conceivably be zero, regardless of what the Federal Reserve Discount rate is. Both companies do not reach enough low- to medium-income buyers and by raising loan limits almost every year, they maintain their monopoly and false manipulation of housing prices by continuously raising their loan limits.

Fannie and Freddie are focused on using what Wall Street sees as government backing to cheaply take on risk and boost profits for shareholders. The only problem is, now that the shareholders have been betrayed, how long will it take for Fannie to become America’s largest casualty of a fraudulent financial system?

A big write up in the Wall Street Journal about Enron’s troubles started the bear raid that eventually destroyed Enron’s stock prices. Just like Enron, Fannies’ use of accounting tricks caused it to lose investor faith and credit, Fannie is faced with a vote of no confidence and we should expect some criminal indictments to be coming forward fairly soon.

Fannie’s "profits" continue to be illusions created through accounting tricks which may be more than a year away from full disclosure to the overall market. The real numbers are six years behind in factual reporting.

In Fannie's case, those profits were manipulated to trigger maximum bonuses for executives, but the chickens have yet to come home to roost. It is too late for Fannie to be forced to refocus on its core mission. It must be merged with Freddie and taken over by the Treasury department so the false face can be lifted and America can wipe its’ Fannie clean, otherwise, America’s name will continue to remain mud in the eyes and perceptions of global investors.

Treasury Under Secretary for Domestic Finance Randal Quarles has said that restricting Fannie and Freddie to guaranteeing mortgages, and reducing their ability to make investments, would not hurt the housing market.

The Securities and Exchange Commission has recommended limiting the amount of time Fannie Mae has to file up-to-date financial statements before it is dropped from the New York Stock Exchange, SEC Chairman Christopher Cox said in testimony before the Senate Banking Committee.

Fannie has not produced timely financial reports since 2004 and is in the midst of restating earnings following its $11 billion accounting scandal. Under NYSE rules, Fannie Mae was in danger of being "delisted" from the exchange, a step that could undermine confidence in the company and pressure on its stock. The NYSE says that it made an exception for Fannie Mae to avoid disrupting the market. It didn’t for Enron and confidence is already undermined so NYSE's decision is moot. It has only delayed the inevitable.

So why make exceptions when fraud is clearly self-evident and the worst financial disaster in the history of the world is teetering and looming right before our eyes? Fear is the answer.

Perhaps it is a matter of national security that America’s Fannie is allowed to stay in business and remain listed on the NYSE. But to the outside world, this is even more damaging. It further erodes confidence in the bond and stock markets.

If foreign governments cut off the supply of money to the bond markets of America, it can no longer finance its war efforts around the globe. It may be damaging to US Security, but it would eventually lead to greater global security.

Allowing Fannie to continue to trade tells the rest of the world that the corruption is not yet over. America still has a very dirty Fannie. America has gotten so fat it cannot reach around and clean up its own messes without keeling over.

SEC Chairman Cox, who comes from a career that spanned 17 years in Congress, said in his prepared statement that his agency has "encouraged the NYSE to amend its rule to put an expiration date on the exception." He did not recommend a specific deadline.

In prepared testimony Mudd pledged that by the end of the year, Fannie would finish restating its financial reports for the period from 2001 through 2004.
It still needs to file reports for 2005 and the current year to be in compliance with SEC rules requiring publicly traded companies to file timely financial statements.

This double standard only shows investors that while the real issues of fraud, corruption and scandal at the highest levels of Wall Street are clearly out in the open, the rest of the world must move its money elsewhere for it to be safe and sound.

It is already too late to stem the tide of capital flowing away from the United States markets. The latest statistics show that Foreign Investment in America dropped by 34% in one month alone just two months ago, a trend that is likely to continue.

Foreigners bought a net $46.7 billion in U.S. securities in April, the lowest level in more than a year, according to the latest data from the Treasury Department. April's buying was down 34 percent from March's foreign net purchases of U.S. securities at $70.4 billion, the Treasury said in its monthly international capital report.

Merging Fannie and Freddie into the Federal Housing Administration would not further damage the industry, but by allowing both institutions to continue to exist in their current form would in the long run eventually cause the collapse of the housing market.

The Mudd solution has been repeatedly iterated that Congress should pass a bill to create a stronger regulator. Mudd is asking for further regulation. Congress created the FHA; it also created the OFHEO, the Office of Federal Housing Enterprise Oversight. We have HUD, the SEC, and the Treasury Department.

Neither Congress, HUD, the Treasury Department, FHA, OFHEA, the SEC or Fannie can undo the harm that has already been done to American home buyers and owners without telling the truth, the whole truth and nothing but the truth.

But if they all did that, America’s name would really be mud.

And the risk of shorting America's Fannie by the Soros Funds would be minimalized.

Copyright © 2006 By Alex S. Gabor. All Rights Reserved.

Sunday, June 18, 2006

SOROS AND ME! PART VII

AMERICA’S FANNIE HAS BEEN SPANKED-BUT ITS’ NAME IS MUDD!

By: Alex S. Gabor


My great adopted uncle George Soros has been accused of all kinds of wrong doing, and like me, he may have a few streaks of mischief left in his acute mind. Soros actually means “sharp” in Hungarian and he has always lived up to his name as have I to mine.

If not being criticized for “breaking the bank of England”, condemned for “causing the Asian financial crisis”, or being attacked by Neocon Nazi far right fundamentalist Christian fascist political forces for donating millions to the causes of open society, he might soon add the collapse of the US real estate market as the final feather in his long capped track record of making billions from the misfortunes of others’ miscalculations and misperceptions of the reality in financial markets.

Soros, earlier this year predicted a total meltdown in the real estate markets beginning some time in 2007. This author on the other hand published his article “The Real Estate Bust of 2006” last December.

The stages for those perceptions have been set as America’s Fannie has been spanked with $400 million in fines, only the beginnings of turning inside out the entire ponzi scheme of American real estate finance.

Criticism levied at the mortgage finance giant after an $11 billion accounting scandal is fair and remains ongoing into the far foreseeable future as the onion is peeled away by Congressional investigators and greater public scrutiny. By the time real honest accounting is done, Fannie will be trading in the pennies. That idea scares many in Congress.

The Fannie Mae of years past may have made substantial changes and may not appear what it once was, but it continues to operate a massive ponzi scheme using funds from foreign investors to maintain its’ illusions of profits for its stockholders.

The only difference between Fannie and Enron is that the international markets perceived the truth about Enron far too quickly but is yet to discover the whole truth about America’s Fannie, which is still encrusted with the dark forces of fraud.

On the surface, America’s Fannie has a new face, as its’ new Chief Executive Officer Daniel Mudd attempted to sweet talk Congressional leaders during his appearance on Capitol Hill.

Redirecting attention away from the truth is one way in which criminals are able to perpetuate their schemes that ultimately wind up being exposed by those who know better and can profit from shorting FNM and the entire real estate industry during the next several years.

George Soros didn’t hire me to write this blistering article, nor am I being paid to do it. I write it because in my honest opinion it is time for the global finance people and those central bankers who keep feeding the Octodragon that is destroying our planet to wake up and realize that they too are being conned by a system that is nothing more or less than the greatest ponzi scheme ever invented in the history of man.

A Ponzi scheme that happens to be poetically known as the Fannie of America which is now headed up by a man whose name is literally Mudd.The company has gone to great lengths to lower its profile and take a more humble tone. America is trying to hide its Fannie from the rest of the world, but its nakedness is about to be exposed and laid bare for the entire planet to scorn and laugh at because in truth, the entire system is a complete fakery and mockery of the American dream, while America continues to sleep at the wheel, the rest of the world sees the light of a new dawn, and the American nightmare is foisted upon us all.

The bubble has already popped. The gas being let out of America’s Fannie, like some embarrassing moment at the global trough of abundance, is being sidestepped with political rhetoric and doublespeak, and although many politicians are blushing, it is those who see the real opportunity that will be laughing all the way to their foreign bank accounts.

Individual Americans’ collective wealth has ballooned to $54 trillion according to the Bernankeular of the Federal Reserve. What’s a few trillion vanishing dollars to a pump and dump scheme so sophisticated it takes an axe to peel away the rubric that poses as facts before the global financial markets?

America as a sovereign entity owes $10 trillion to foreign banks and investors. But its’ homeowners, who think they live the American dream, owe another $10 trillion in real estate loans, 50% of which is controlled by America’s Fannie and her nightmarish brother Freddie, the one that has no Krugerands.

According to the stats reported by the U.S. Treasury Department, America's first 42 Presidents, from George Washington (1789) to Bill Clinton (2000), borrowed a combined total of $1.01 trillion from foreign governments and financial institutions. From 2000 to 2006, the Bush White House has borrowed $1.05 trillion alone. We as a nation have borrowed in the last 5 years what we had previously borrowed in the first 211 years of our country.

Those stats in fact are false and misleading. The real number is closer to $10 trillion, while the national debt was around $6 trillion and budget surpluses were on the horizon when Bush took office; it is now close to $9 trillion, with the debt ceiling having been raised twice, meaning that Bush has already borrowed about $3 trillion to finance his “war on terror”.

That means the American Ponzi scheme has mushroomed and is now at its peak. The interest paid to prior investors on Treasury Bills was funded by simply borrowing more and more each year from foreign investors. But foreign investors are realizing that the Ponzi scheme cannot go on forever, and despite the negative impacts to their own economies, foreign governments, aside from their distaste at America’s arrogance in military matters, are beginning to tighten their belts.

China is now taking steps to rein in its’ hyper inflationary annual growth rate of 30% by cutting off the supply of money to its banking system and the construction industry that fueled the double digit growth rates of the past decade.
The impact of this will limit the amount of money available by the Chinese to keep fueling the American ponzi engines, namely Fannie, Freddie and the Treasury bond markets, driving the US dollar ever lower, and pushing Treasury bond prices toward junk bond status.

Foreign perceptions are now coming around to realizations that it is very risky to invest in an America that cannot keep its Fannie clean.

Some readers may be asking, what does this all have to do with the writer and George Soros?

In 1993, when I first read about Soros and how he made a billion dollars in one day, I realized that he may have taken his profits in a certain week after the Bank of England managed to persuade the British Parliament not to join the European Monetary Union, but that the planning and strategic decision to short the British Pound had to have been made months, perhaps even years before, and the amount of money necessary to amass to make that kind of short sale took tremendous confidence in a single money manager who had already proven his track record numerous times in prior trades.

For the next ten years I studied how this one man, as a result of his financial prowess, had funneled billions of dollars into organizations which helped topple repressive governments, and bring about greater freedoms in societies which had previously been closed.

America is and continues to be run by a repressive government that is so closed and secretive, that anything it does wrong is hidden behind the guise of national security.

As a result of my research I began to develop a prospectus based on the European model of issuing bearer shares and allocated a large portion of those shares to Soros himself.

After two 10 for 1 forward stock splits and hundreds of variations later on the development of that prospectus, if a market had developed for those shares, both Soros and I would have been the world’s first trillionaires.

The goal of the business plans and operations were to create a financial system that didn’t bear interest, not out of some religious context, but from a sound economic basis going forward; it was plainly self evident that any system which kept borrowing to keep alive was doomed to failure.

Oddly enough, the financial markets could still make money without charging interest, but that is not the subject of this article.

The plan included gradually replacing America’s Fannie with not for profit international organizations organized in 50 states, 10 provinces, and 32 foreign countries that lend money for housing at zero interest, changing the Federal income tax laws to encourage rapid debt repayment instead of mortgage interest deductions, and generally building a “free and clear” global society.

The main argument for such an endeavor being the answer to the simple question; why would any rational human being borrow money from himself and then charge interest to himself when the money was created out of thin air to begin with?

Most people who had read and understood the prospectus agreed wholeheartedly and went so far as to enter into agreements with my organizations to further their own and society’s best interests.

But it became such a great threat to the current financial system, despite its proposed solutions that would have limited any damage to the stake holders, namely America’s homeowners that I personally became the target of the very government I was seeking to assist.

While the House Financial Services Committee Chairman Michael Oxley appropriately called Fannie "the Enron of the financial services industry," and the U.S. Treasury Department is currently ramping up its public campaign to push the Senate to act quickly to deal with the implosion of Fannie, the prospectus, which is lost in obscurity somewhere in cyberspace, had called for a merger between Fannie and Freddie and a subsequent decriminalization and a gradual deprofitization of the mortgage operations of America.

In true Christian parlance, this was known as “throwing the money changers out of our homes”.

Unfortunately, certain vested interests got hold of the prospectus and the SEC, on the very same day that it went after an illiterate visionary who actually filed a prospectus for TOKS with that regulatory agency, a company whose business plan included a plan to consolidate the entire Fortune 500 into one company, filed a civil action against me and my company, Penny King Holdings Corporation that left me both emotionally and financially devastated. Another chapter to be dealt with later.

Three years later, I am writing this column called “Soros and Me!” still in hopes that somehow, George Soros, whom I have never met face to face or spoken with, will contact me and discuss how we might together still co-create an open free and clear American society.

Perhaps hope in me springs eternal.

In the book Buffettology, about Warren Buffett's approach to investing, a passage illuminates clearly Fannies problems when compared to another troubled company in America: "The phenomenon of a company growing only because money is being borrowed can be seen in the financial records of the General Motors Company, which indicate that between the beginning of 1985 and the end of 1994 it earned in total, approximately $17.92 a share and paid out in dividends approximately $20.60 a share.

"During this same time period the company spent approximately $102.34 a share on capital improvements.

"The question that should be running through your mind is, if General Motors' earnings during this time period totaled $17.92 a share and it paid out as dividends $20.60, where did the extra $2.68 that it paid out in dividends and the $102.34 that it spent on capital improvements come from?"

The answer: GM borrowed over a hundred billion dollars during the same period and has never paid it back, probably never will.

Smart investors who seriously delve into Fannies deeper crevices will be able to discern a similar pattern of behavior, the only difference being that Fannies product is annually inflated paper assets sold to foreign and domestic institutional investors.

Since December of 2000, Fannie’s stock price has lost almost half of its value, falling from $90 to $47, dividends have been cut in half from a high of .52 per share in October of 2004 to .26 in the latest quarter, and the number of institutional investors holding the stock for the long term continues to diminish.

Mudd keeps saying that Fannie is not "unethical." "I don't think as a broad characterization that this is an unethical company. I think it's a highly ethical company that's motivated by a lot of different things that include a valuable and important mission."

It is mainly motivated by money because that is its’ product. Affordable money to the housing markets in America, but if that product is artificially inflated, it becomes a very destructive product in the long run.

Its’ mission is supposed to be affordable housing for 300 million Americans. In that mission it has utterly failed.

Instead, America’s Fannie has lined the pockets of a few former managers, all of whom have not been held to account like those at Enron, all the while maintaining the front that it is a good ethical company, much like Ken Lay who “didn’t do anything wrong”.

Mudd said Fannie has rebuilt its management team and that 44 of 55 of the most senior managers are in new positions or are entirely new to the company. It has overhauled staffing in its finance division and hired thousands of contract employees to conduct the earnings restatement.

It didn’t take thousands of accounting professionals to pierce the veil at Enron, in fact thousands of accounting professionals lost their jobs because of Enron and it is highly likely that thousands more will lose them because of Fannie.

Yes, I am predicting the collapse of America’s Fannie.

Fannie also paid close to $100 million in bribes and political contributions to various political consultants, lobbyists, and political organizations over the past decade to keep their Ponzi scheme from being overly exposed. So sue me for exposing America's Fannie? The prospectus did in fact do that.

Fannie, according to its own false public statements, has apparently restored its capital and improved its relationship with regulators, agreeing to a $400 million fine and a cap on growth in its investment holdings.

This cap basically is the trigger that cuts off the limitless spigot of growth that has fueled real estate prices in America for the past four decades. A major shift in policy. When the dust finally settles, remember this article and the others written on the same subject by the same author.

Mudd has disagreed with a memo from an analyst with the Republican Policy Committee which said the CEO himself was at the center of a "corporate strategy" to misrepresent Fannie Mae. Mudd is protecting his position and future earnings. He gets paid a base salary of $2 million a year, not counting stock options and other perks.

Fannie, like Freddie, is owned by shareholders but charged by Congress with supporting housing by keeping money flowing in the mortgage market. Congress didn’t realize that by allowing Fannie to operate as a for profit enterprise that greed would eventually take over and cause America to increasingly pay more and more for housing and ultimately bring about the demise of the entire housing industry. They should have known better.

Fannie and Freddie have strayed from their missions. The companies do not lower mortgage rates for homebuyers, if at all. They both act as a monopoly on rates when rates on housing finance could conceivably be zero, regardless of what the Federal Reserve Discount rate is. Both companies do not reach enough low- to medium-income buyers and by raising loan limits almost every year, they maintain their monopoly and false manipulation of housing prices by continuously raising their loan limits.

Fannie and Freddie are focused on using what Wall Street sees as government backing to cheaply take on risk and boost profits for shareholders. The only problem is, now that the shareholders have been betrayed, how long will it take for Fannie to become America’s largest casualty of a fraudulent financial system?

A big write up in the Wall Street Journal about Enron’s troubles started the bear raid that eventually destroyed Enron’s stock prices. Just like Enron, Fannies’ use of accounting tricks caused it to lose investor faith and credit, Fannie is faced with a vote of no confidence and we should expect some criminal indictments to be coming forward fairly soon.

Fannie’s "profits" continue to be illusions created through accounting tricks which may be more than a year away from full disclosure to the overall market. The real numbers are six years behind in factual reporting.

In Fannie's case, those profits were manipulated to trigger maximum bonuses for executives, but the chickens have yet to come home to roost. It is too late for Fannie to be forced to refocus on its core mission. It must be merged with Freddie and taken over by the Treasury department so the false face can be lifted and America can wipe its’ Fannie clean, otherwise, America’s name will continue to remain mud in the eyes and perceptions of global investors.

Treasury Under Secretary for Domestic Finance Randal Quarles has said that restricting Fannie and Freddie to guaranteeing mortgages, and reducing their ability to make investments, would not hurt the housing market.

The Securities and Exchange Commission has recommended limiting the amount of time Fannie Mae has to file up-to-date financial statements before it is dropped from the New York Stock Exchange, SEC Chairman Christopher Cox said in testimony before the Senate Banking Committee.

Fannie has not produced timely financial reports since 2004 and is in the midst of restating earnings following its $11 billion accounting scandal. Under NYSE rules, Fannie Mae was in danger of being "delisted" from the exchange, a step that could undermine confidence in the company and pressure on its stock. The NYSE says that it made an exception for Fannie Mae to avoid disrupting the market. It didn’t for Enron and confidence is already undermined so NYSE's decision is moot. It has only delayed the inevitable.

So why make exceptions when fraud is clearly self-evident and the worst financial disaster in the history of the world is teetering and looming right before our eyes? Fear is the answer.

Perhaps it is a matter of national security that America’s Fannie is allowed to stay in business and remain listed on the NYSE. But to the outside world, this is even more damaging. It further erodes confidence in the bond and stock markets.

If foreign governments cut off the supply of money to the bond markets of America, it can no longer finance its war efforts around the globe. It may be damaging to US Security, but it would eventually lead to greater global security.

Allowing Fannie to continue to trade tells the rest of the world that the corruption is not yet over. America still has a very dirty Fannie. America has gotten so fat it cannot reach around and clean up its own messes without keeling over.

SEC Chairman Cox, who comes from a career that spanned 17 years in Congress, said in his prepared statement that his agency has "encouraged the NYSE to amend its rule to put an expiration date on the exception." He did not recommend a specific deadline.

In prepared testimony Mudd pledged that by the end of the year, Fannie would finish restating its financial reports for the period from 2001 through 2004.
It still needs to file reports for 2005 and the current year to be in compliance with SEC rules requiring publicly traded companies to file timely financial statements.

This double standard only shows investors that while the real issues of fraud, corruption and scandal at the highest levels of Wall Street are clearly out in the open, the rest of the world must move its money elsewhere for it to be safe and sound.

It is already too late to stem the tide of capital flowing away from the United States markets. The latest statistics show that Foreign Investment in America dropped by 34% in one month alone just two months ago, a trend that is likely to continue.

Foreigners bought a net $46.7 billion in U.S. securities in April, the lowest level in more than a year, according to the latest data from the Treasury Department. April's buying was down 34 percent from March's foreign net purchases of U.S. securities at $70.4 billion, the Treasury said in its monthly international capital report.

Merging Fannie and Freddie into the Federal Housing Administration would not further damage the industry, but by allowing both institutions to continue to exist in their current form would in the long run eventually cause the collapse of the housing market.

The Mudd solution has been repeatedly iterated that Congress should pass a bill to create a stronger regulator. Mudd is asking for further regulation. Congress created the FHA; it also created the OFHEO, the Office of Federal Housing Enterprise Oversight. We have HUD, the SEC, and the Treasury Department.

Neither Congress, HUD, the Treasury Department, FHA, OFHEA, the SEC or Fannie can undo the harm that has already been done to American home buyers and owners without telling the truth, the whole truth and nothing but the truth.

But if they all did that, America’s name would really be mud.

And the risk of shorting America's Fannie by the Soros Funds would be minimalized.

Copyright © 2006 By Alex S. Gabor. All Rights Reserved.

Thursday, June 01, 2006