FRE & FNM used up to 100x leverage, AIG & LEH used up to 30X leverage; and that's after the banks used up to 10X Leverage on financial debt.

This has to be stopped. The root problem going back to 1912 has to be fixed.

Richard Fuld, CEO of LEH, admitted to 30x leverage contributing to the problem.

Now I read on seekingalpha.com about FRE and FNM doing 100:01 leverage on their debt insurance.

Most investment banks were leveraged by a ratio of 30 to 1, and they were dealing with billions of dollars instead of thousands. Government sponsored mortgage giants Freddie (FRE) and Fannie were using leverage closer to 100 to 1, because of their supposedly stricter lending standards and implicit government backing.

http://seekingalpha.com/article/97299-leverage-101-the-real-cause-of-...

How can "we the people" know the root cause is being "fixed" if we don't know about the root cause. Most of the news is telling us the root cause is a lack of confidence about all those mortgages being paid as agreed.

And are we sure we understand what happens when 100:01 leverage is applied after the fractional banking reserve requirement is applied? Maybe if this subject needs a spotlight to get people's attention. Then maybe the "lack of confidence" could be better understood.

The synthetic derivatives, ie "financial instruments" , were not attached to mortgages, but were just a tool by which to gamble on how a package of mortgages would trade in the market. It was ridiculous by standards of true counting, or honest accounting.

And somewhere after the "Lack of Confidence" sets into the minds of "thinking economists", some companies like AIG and Lehman actually sold contracts that were supposed to "guarantee" the performance of specified bundled mortgages. Those "mortgage insuraces" were backed with essentially nothing, yet legally they gave assurance of at least a double A credit worthiness to the buyer of those mortage bundles.

So this nil backed "insurance" was another rung on the ladder to thin-air bursting of the bubble of super multiplied dollars.

Then, when people began asking for the dollars, instead of just a piece of paper agreement for dollars, the pyramid scheme collapsed.

So, Pyramid Scheme, is what it was, is and shall continue to be so long as "fractional banking" is allowed. I see no end to the system, but rather a utilization of the system to attain a one world police state so as to protect the status quo of those promoting the system.

That's my opinion after more than 40 years of reading and researching the available information.

Please note: The one world state was proclaimed publicly by the U.N. through the New York Times, September issue of 2000, or 2001. I forget which year, but it was also a major story headline in my local paper. It foretold by the year 2005, the U.N. expected to have in place its world bank, world army, world courts, and world education system. Shockingly to me, no major follow up by other reporters was made on that bold story. It was like, the story was so big no one could comment.

See:
The Creature from Jekyll Island, book available at TheRealityZone.com, by G. Edward Griffin
The Rewriting of America's History, by Catherine Millard
Original Intent, by David Barton, www.Wallbuilders.com
John Birch Society literature, www.jbs.org
New York Times, microfilm index back through the decades.
Senator Larry McDonald,