-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- Catherine is former Assistant Secretary of Housing-Federal Housing Commissioner-HUD/Bush Administration Dave Hartley http://www.Asheville-Computer.com/dave -----Original Message----- From: Catherine Austin Fitts [mailto:[EMAIL PROTECTED]] Sent: Monday, January 31, 2000 12:55 PM Subject: Drugs, The War on Drugs, & The Investment Model Recent posting have described the importance of the drug business to traditional formation of capital. This model that uses genocide to fuel venture capital has become intimately connected to the stock market. Developing a model that bests it will require transparency that illuminates the relationships. One of the important lessons I learned dealing with HUD enforcement was the giant sucking sound that prisons stocks traded on a per bed basis and Section 8 property management companies traded on a per unit and mortgage banking companies traded on mortgages originated were making to fuel the conversion of HUD into a financial fraud and enforcement center. Nothing fuels government policy more that large capital gains on management's stock options which translate into large donors. Yesterday, NYTimes coverage of GW Bush said the largest donors were 1. Retired individuals 2. Law Firms 3. Real Estate Fits with the HUD story perfectly. The Bush's have gotten to where they have gotten by helping their friends get out at the market top in the 80's and 90's both. ============================================================================ ======= SOLARI Letters to the Editor New York Times [EMAIL PROTECTED] Tim Egan's Article on Prisons, March 7, 1999 Ladies and Gentlemen: Thank you for Tim Egan�s article on prisons. It was an excellent summary of the growth in the US prison population over the last two decades. A welcome follow up might be an exploration on how the money works on prisons. The federal government has promoted mandatory sentences and taken other steps that will increase the overall prison population to approximately 3 million Americans as recently legislated policies finish working their way through the sentencing system. This means that approximately 10-15 million Americans will be under the jurisdiction of the criminal justice system from arrest, to indictment, to trial, to prison, to probation and parole. The enactment of legislation ensuring the growth of prisons and prison populations has been a bipartisan effort. Republicans and Democrats alike appear to have found one area where we can build consensus for substantial growth in government budgets, staffing levels and media attention. Indeed, during this period, the number of federal agencies with police powers has grown to over 50, approximately 10% of the American enforcement bureaucracy. This is further encouraged by federal laws permitting confiscation of assets such as homes, cars, bank accounts, cash, businesses and personal property that can be used to fund federal, state and local enforcement budgets. One way to look at the financial issues involved is to view them from the vantage point of the portfolio strategists of the large mutual funds. We have approximately 250-280 million people in America. The question from a portfolio strategist standpoint is what productive value will each one be creating in companies and communities and how does that translate into flow of funds that then translate into equity values and bond risk. The prison companies are marketing one vision of America with their prison and prisoner growth rates, while the consumer companies are marketing another. The two are not compatible. CCA�s assumptions regarding the growth in arrests and incarceration can not be true if Fannie Mae�s, Freddie Mac�s and Sallie Mae�s assumptions about homeownership and college education rates are. We, the people, cannot refinance our mortgages or buy homes or raise our children and send them to college if we are in jail. Meantime, the municipal debt market is also facing conflicting positions. If prison bonds are a good investment, then some general obligation bonds may in trouble. We, the taxpayers, can not support the debt: we are no longer taxpayers. We have become prisoners. Whatever we are generating in prison labor, it is certainly not enough to pay for the $154,000 per prisoner per year costs indicated for the full system by the General Accounting Office. It would be very illuminating to get the rating agencies and the ten largest mutual funds together in one room for an investor roundtable to discuss pricing levels on the investment of our savings that is internal to their portfolios and ratings. We would compare equity valuations and growth rates of: � companies who make money from the American people losing productivity � companies who make money from helping the American people grow more knowledgeable and productive. We are investing in two different visions that can not both come true. We could then calculate which was going to succeed, and what the integrated pricing level would be. Better yet, what could happen that would make the most money for the investment community. The question is which vision is best for we, the equity investors of America? And why are investors assuming both win as they price their stocks and bonds? It is critical to look at prison policy from the standpoint of maximizing return on equity investment. It would be a terrible thing, while I can no longer pay taxes or buy a house or send my son to college because I am in prison, if my vested pension benefits were wiped out by the time I re-entered society. It is bad enough that my life savings are being invested in companies that make money from promoting that me and my family should be arrested and incarcerated. It would be worse if I and my family were broke because companies that make money from loss of productivity turned out to also be a bad investment. Such a roundtable might make for a great New York Times article. If you are willing to take it on, Solari would be happy to assist your staff by contributing background analytics on how the money works in prisons. Sincerely Yours, Catherine Austin Fitts President Solari, Inc. [EMAIL PROTECTED] <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are not allowed. Substance�not soap-boxing! These are sordid matters and 'conspiracy theory'�with its many half-truths, misdirections and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. 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