Buyers of these credit default swaps bet on different investment houses and banks that would experience loan defaults. Lehman Brothers was a good bet. These credit default swaps could be bought even though the buyer had no financial interest in the institution they were betting on. Unlike insurance, where the buyer had to have a financial interest in what they were insuring, these were like bets at a casino, hence the term "casino economics". When Lehman Brothers went belly up, along with a number of banks, ING, the largest insurance company in America, held most of these derivatives and had no way to make the pay-outs that the investors demanded. To stop ING from going belly-up the Federal Government stepped in and poured billions into the firm.
These derivatives made some investors rich, courtesy of the Federal Government. The figures for the amount it took to bail-out Wall Street were a calculation that "was peer-reviewed by economists at the Center for Economic and Policy Research in Washington, D.C. This table relies entirely on government data and represents an accounting of actual government funds disbursed, mostly in the form of loans. Our total includes major programs of the U.S. Treasury Department, the Federal Reserve and other government agencies to assist the financial sector and institutions that had a role in the crisis."
All of the reasons above are the reasons why I doubt that the United States acts in the best interests of the American people. The war taking place in Afghanistan is a prime example of this logic. The American people have no vested interest in that nation. This "War on Terror" is a façade for the real goal of Full-Spectrum Dominance by the United States. The US is striving for global hegemony. Is this what the majority of Americans want? Where does it say in the Constitution that our number one priority should be top dominate the World?
The trouble with empires is that they not only rise, in the end they fall. It appears that the earlier empires such as Egypt and Rome lasted hundreds of years. As time went by, the empires that rose after lasted for shorter and shorter times. The Soviet Empire only lasted nearly one hundred years. How long will the American Empire last. Is it worth spending more on our military than all the other nations on the planet together?
We spend 711 Billion dollars according to our military budget alone. This does not take into account appropriations for ongoing wars and intelligence costs that balloon the cost to almost three trillion dollars. The rest of the world spends 851 billion dollars combined. Why is that? It's because we have military bases in 63 different countries. "The US tends to view the Earth surface as a vast territory to conquer, occupy and exploit. The fact that the US Military splits the World up into geographic command units vividly illustrates this underlying geopolitical reality". Is this what the American people want? It's not what I want. As far as conquering the world, just because we believe that we can, is an idea that I don't support. 53 cents out of every dollar in taxes goes to the military. I don't think that the majority of Americans would support that if they knew and thought about it.
This march toward global domination is insane, insane and expensive too. Funding the military and associated intelligence agencies is like pouring money down the toilet. If Romney is elected Defense spending t will spike $2.1 trillion. Wow. These people just won't stop. In all of this you can count me out. I just want to live the rest of my life and see my granddaughter grow up.
I have simple needs and one of those needs isn't watching my government try to conquer the world.