Alex Higgins Blog

Wall Street Gate is the scam that has caused the stock market crash of 2008.  Anderson Cooper of CNN is doing a great job in pointing out who these culprits of the collapse are including Joe Cassano, Richard Fuld, and Chris Cox.

But no one in the main stream media has pointed out the real reason for the financial crisis and the economic meltdown, which is a group of wall street insiders are running an insurance fraud scam. I have done my own investigating on the subject and I here’s what I have learned.

Every time the fed injects cash into a bank, or does a take over, the money is going directly toward paying off illegal insurances policies (Credit default swaps).

People have been complaining along time about insider trading in credit default swaps and hedge funds manipulating markets by shorting stocks.

Look at our current stock market crash. Its been caused by and insurance fraud scheme ran by wall street insiders (wall street execs+Hedge fund managers).

Wall Street Gate Started with Stock Gate and evolved into the following mortgage insurance fraud scam.

1)They take insurance policies to protect a rating cut and or bankruptcy (AKA Credit default swap ). see this shocking 60 minutes special on credit default swaps

2) Greedy CEO’s involved in scheme take on $60 trillion in insurance policies they can’t pay to make their banks risky. They knew exactly what risk they where taking and did it on purpose so it would make it easier to make the stock prices tank.

3) Hedge funds short the stock.. driving down the stock price until the banks credit ratings get cut.

Everyone in the scam makes billions 1) on the short selling [basically a bet that the stock will go down] and 2) collecting the on the insurance policy/credit default swap.

They continue tanking a stock by betting against it even more forcing it into bankruptcy the whole time collecting trillions in insurance claims on these Credit Default Swaps and that’s what caused the stock market crash of October 2008. They paid off crooked politicians who allowed them to illegally run their scam and they are stilling running it now.   Lehman’s AIG, Merrill, Wachovia, WaMu all victims of this scam. It has caused the stock market crash.

Now, Politics are irrelevant here in regard to it was the democrats or the republicans fault.

1) The democrats did put through the change in the credit reinvestment act which is part of the republican propaganda being used to blame democrats. However, the decline in home values and defaults on mortgages is not what caused this mess. Wall Street Executives purposely put their banks at risk so they could tank the stock and collect on the insurance policies when it tanked.

2) Democrats used the commodity future modernization act to blame it on the republicans. That was a republican bill that repealed Great Depression Regulations and allowed Wall Street to sell credit default swaps. That republican bill did cause the Enron scandal and contributed to the mess we are in but again its not the republicans that where at fault. They simply opened the markets so Wall Street could make their own securities. It is the group of wall street insiders that are involved in this scam that are at fault. In Fact JP Morgan illegally started selling Credit Default Swaps in 1997 before it was the Commodity Future Modernization Act was introduced by republicans and passed.

You have to keep an open mind and remember that you don’t always get the full story from the main stream media. They only tell you what they think will make a good news story.

Read more on my blog and watch my video on the subject:
http://blog.alexanderhiggins.com/2008/10/what-caused-the-stock-market-crash-credit-default-swap-scandal-revealed.html