“THE SUCKER TRAPS”, Part Two
Two
by Sherman H.
Skolnick 7/25/02
THE GREAT CRASH
2002-2003 and Beyond
Did you ever talk
to the elders of your family? About how they or others came to financial ruin
in the bad old days of the Great Depression?
If you did, what
could you have found out? Following the Crash of October, 1929, the stock
market by April, 1930, recovered by fifty per cent, typical of horrendous bear
markets. This was among talk that a fresh prosperity was just around the
corner. And that now was the time to invest in American business for “the
long haul”.
BUT, who ever
mentions there was an even worse, faster-developing Crash in 1937? Stock prices
did not return to 1929 levels until 36 years later. Did all the victims of 1929
live that long?
The accepted
pundits did not and do not bother to point out some key facts.
[1] The gap
between the ultra rich and the common folks had become the greatest ever(like
now). The income and assets of the aristocracy in the 1920s had gone UP AND UP.
The wages of the ordinary people, however, had become stagnant if not declining
(like now). Farm prices, if anything, had leveled off or had gone down in the
1920s
and into the
1930s (like now). [2] Ordinary workers and small business people were urged to
own their own home. In good times, that would seem to be a great idea. In many
city communities, there sprung up block after block of individual residences.
As you looked down some streets, you could see row after row also of two-flats
and three-flats, supposedly income producing buildings.
The properties
had five-year, so-called Canadian-style mortgages, typical of the era. Who
bothered to think about what would happen if the mortgage had to be rolled over
or renewed in bad times? Who realized how would-be owners would be pressured to
pay up the mortgage if the bank or mortgage company went under?
[3] There were
plenty of newspapers supposedly competing with one another. But, they all
relied for their existence on advertisers. The small amount paid by readers
could not, by itself, keep the publications going. One subject was generally
taboo. They did NOT publish pictures, if they had any, of the very wealthy, or
if they did, were obligated to show them in a good light, smiling. And, they
did NOT condemn the Establishment, the elite, for taking financial advantage of
ordinary workers, small business folks, and yeoman farmers.
[4] There were
plenty of community banks. And the big banks were “downtown”. In some
cities, you could see three different banks on the same street corners. The
banks took deposits at the same time they sold corporate securities and
mortgage bonds(after years of being prohibited, banks through their holdings
firms or even directly, now sell such).. Chicago, for example, was a center to
banks selling “Gold Bonds”. That is, mortgage paper, the interest on
which was payable in gold per month or per quarter. Some workers because they
worked on several jobs were able to save up enough to buy such bonds and used
the proceeds toward their rent on their flat.
[5] For investing
in American business, some workers and small business folks found it convenient
to buy shares in Investment Trusts. That was the name for the middle-men who,
in turn, bought shares in stock. Few bothered to read the contracts which had a
lot of technical legal details.
Here are some of
the consequences and follow up details
===Some common
folks put their family money into Wall Street as a result of the market
“recovery” of the Spring of 1930. With a background as an engineer
and developer for the super rich worldwide, President Herbert Hoover made
statements he ought to have known were most likely mere puffing and false. He
said words to the effect that, following the 1929 Crash, the American economy
was on a sound and solid basis. Perhaps the present generation does not like to
study history. Too many young folks think this Hoover was “the head of the
FBI”. This nonsense and lack of knowledge just causes the gap between the
generations to be wider than usual.
===Those who
re-invested in the “market recovery” of 1930, or failed to get the
Hell out of Wall Street, as time went on, saw their stocks lose 90 per cent or
more of their value or become entirely worthless. Unlike the direct purchase of
stock, those who bought shares in Investment Trusts most often lost everything.
The fine print of the contracts (if they were even shown or given a contract) stated
there is a redemption clause. That meant, if too many investors tried to redeem
their shares in the Investment Trust, the entity was frozen up. Thereafter, any
investors left in the investment pool got zero; they could not transact in,
out, or redeem. The Investment Trusts went into all manner of legal snarls for
years and years, and receiverships, and some just plain disappeared.
If you listened
carefully to the family elders, you heard them curse the “downtown
banks”. And even worse hollaring was against the “stinking Investment
Trusts”. When President Franklin Delano Roosevelt declared a Bank Holiday
in 1933, he ended up ruining the community banks in favor of the “downtown
banks” which survived. After World War Two, what sprung up as middlemen in
stock purchasing were called MUTUAL FUNDS.. The term Investment Trust had
become a dirty word.
By the 1990s, the
Mutual Funds had multiplied like locusts, tens of thousands of them. Like the
infamous Investment Trusts, their alter ego and ghosts arisen from the dead,
Mutual Funds had the rotten redemption clause. Like in the 1920s and early
1930s, who bothered in the 1990s and thereafter, to read the contract about
what could cause the Mutual Funds, formerly Investment Trusts, to be frozen up?
Certainly the oil-soaked, spy-riddled monopoly press are not about to discuss
this aspect of Mutual Funds, which are heavy advertisers and financially
interwoven with the print and electronic media.
===Who in the
press tells you about the supposed brokerage insurance, SIPC, not having
sufficient reserves if a bunch of stockbrokers go bust in a bad downturn in
business. And so you think the U.S. Treasury stands behind SIPC? Oh yeah?
===”Gold
Bonds” became a great scandal of the 1930s. Who corruptly covered it all
up? Why, Joseph P. Kennedy, first boss of the newly-then-formed U.S. Securities
and Exchange Commission and “Founding Father” of the Kennedy clan.
Gold Bonds were based on mortgages. Real estate, being the only free market in
America, went down in price when the bubble burst. Nowadays there are shares on
the Big Board of Fannie Mae, a huge mortgage pool (sort of like “Gold
Bonds” though not paying in the precious metral). Some have the false
impression that Fannie Mae is a Federal Government agency and supposedly in a
mortgage foreclosure crisis, would be bailed out by the U.S. Treasury. Not so.
===In the 1930s,
when real estate prices collapsed, the market price of many properties was
lower than the mortgage. So, some would-be owners of individual residences, or
apartment buildings, left a note inside their abandoned property for the
mortgage company. “Goodbye, mortgage company, nice knowing you. Here is
the key.” The would-be owner could most often at the time purchase a
similar property nearby, for cash, if they still had any, at much less than the
mortgage on their then current item. The press whores now cannot discuss such
things. After all, the Sunday edition of most newspapers have a large real
estate section. Telling the truth about real estate, then as now, is bad for
business.
===In recent
years, a swarm of mortgage companies have shown up from No Where. They urge
owners to suck all the equity out of their property through re-doing the
mortgage or adding another pile of bricks on their head through a second
mortgage. The liars and whores of the press advertising these mortgage
peddlers, do not bother to inquire who they are. Some of them (certainly not
all of them) are purveyors of criminal offshore loot, proceeds of gangster
enterprises too often jointly with corrupt tax collectors, plain old-fashioned
mobsters some in bed (as we have shown in other situations) with judges and
other public office holders. The dirty money is being laundered as
“mortgage lending”.
===In the 1930s,
the enterprising tenant could live in an apartment for a time without paying.
So many apartment buildings were partly vacant, that the landlords offered
three-month concessions. That meant, you could live there for the first three
months for free. There were plenty unemployed to move you elsewhere, in the
dark of night, when the rent freebie expired. (Is more of that coming back,
such as with the overbuilding of condominium buildings?).
===When banks
collapsed in the 1930s, some of the bank presidents opened the Safe Deposit Box
vault and looted the contents of some of the deposit boxes. After all, the
Deposit Box Companies were then, and are now, completely separate entities
housed within the bank building. Few, if any, know this. The vault companies
generally carry no theft insurance. And what box holders wants to report to the
police or the FBI that some jewels, some gold coins, and other valuables are
missing from their deposit box? And can you PROVE what was in the box? Do
husbands really want their estranged or legally separated or divorced wives or
ex-wives to know what was kept in that deposit box? Do corrupt politicians want
tax collectors to know what the public office holder has siphoned off some
public agency’s funds? Hey, do you think highly corrupt IRS officials want to
divulge what is in THEIR safe deposit box?
Two examples. A
top Illinois state official was criminally prosecuted when his estranged wife
blew the whistle on fifty thousand dollars kept in his safe deposit box
apparently embezzled from his state office. A Mayor of Chicago took bribes in
the hundreds of thousands of dollars in the form of diamonds. This loot somehow
disappeared from his deposit box when he croaked. Who could prove what?
===Gotten rich
during the Great Depression era from the looted deposit boxes, some banker’s
families after World War Two used these funds to establish a form of
competitors to banks, called Savings and Loan Associations, appealing to home
ownership and such.
Good references
“The Rich and The Super Rich” by Ferdinand Lundberg, Lyle Stuart
Publishers, 1968, reprinted in paperback in later years. “The Great Crash-
1929″ by Kenneth Galbraith.
Can America’s
secretive PRIVATE central bank, the Federal Reserve, keep pumping up the stock
market? Are they actually now reversing position, and selling short against the
unsuspecting American common people? That is, having made the market go up,
secretly profitting from making it go down? Is the Federal Reserve technically
bankrupt? What is the treasonous history of J.P. Morgan & Company? Study
also Part One of this series.
More coming. Stay tuned.
http://www.skolnicksreport.com/straps2.html NESARA- Restore America – Galactic News
Source: http://nesaranews.blogspot.com/2013/06/the-sucker-traps-part-two.html
