89 The Real Game of Missing Money In his article on your opinion page, “The Fed Didn’t Cause the Housing Bubble,” Alan Greenspan attri- butes the housing bubble to lower interest rates between 2002 and 2005. That’s amazing to me. My company served as lead financial advisor to the Federal Housing Administration between 1994 and 1997. I watched both the Administration and the Federal Reserve aggressively implement the policies that engineered the housing bubble. These are described at my website and in my on-line book, Dillon Read & the Aristocracy of Stock Profits. One story, for example, is the following: “In 1995, a senior Clinton Administration official shared with me the Administration’s targets for Fannie Mae and Freddie Mac mortgage volumes in low- and mod- erate-income communities. We had recently reviewed the Administration’s plans to increase government mortgage guarantees—most of these mortgages would also be pooled and sold as securities to investors. Even in 1995, I could see that these plans would create unserviceable debt loads in communities strug- gling with the falling incomes expected from globalization. Homeowners would default on mortgages while losses on mortgage-backed securities would drain retirement savings from 401(k)s and pension plans. Taxpayers would ultimately be hit with a large bill . . . but insiders would make a bundle. I looked at the official and said that the Administration was planning on issuing more mortgages than there were houses or residents. “Shut up, this is none of your business,” the official snapped back. From: “Sub-Prime Mortgage Woes Are No Accident” One of the dirty little secrets behind the housing bubble is the long standing partnership of narcotics trafficking and mortgage fraud and the use of the two in combination to target and destroy minority and poor communities with highly profitable economic warfare. This model is global. It is operating in coun- ties throughout the world as well as in U.S. communities. “On December 18, 1997, the CIA Inspector General delivered Volume I of their report to the Senate Select Committee on Intelligence regarding charges that the CIA was complicit in narcotics trafficking in South Central Los Angeles. Washington, D.C.’s response was compatible with attracting the continued flow of an estimated $500 billion–$1 trillion a year of money laundering into the U.S. financial system. Federal Reserve Chairman Alan Greenspan in January 1998 visited Los Angeles with Congresswoman Maxine Waters—who had been a vocal critic of the government’s involvement in narcotics trafficking— with news reports that he had pledged billions to come to her district. In February Al Gore announced that Water’s district in Los Angeles had been awarded Empowerment Zone status by HUD (under Secre- tary Cuomo’s leadership) and made eligible for $300 million in federal grants and tax benefits.” Alan Greenspan is a liar. The Federal Reserve and its long standing partner, the U.S. Treasury, engineered the housing bubble, including the fraudulent inducement of America as part of a financial coup d’état. Our bankruptcy was not an accident. It was engineered at the highest levels. Your publication of Greenspan’s breezy and bogus history of the housing bubble insults your readership. Best Regards, Catherine Austin Fitts The power of the killing machine rests in part in the broad based popular support it receives through the investment system and the financial markets. How are we to plead ignorance if the profits and growth in our 401(k) plans and investment portfolios have been enriched from prison stocks and the securities of the banks, homebuilders, property managers, mortgage bankers and other groups who managed this process of ethnic and