Loan my ass!

We have privatized profits and socialized losses. Who's paying for it? You and I. We will be paying China interest for a long time...long after I am dead.

Why are we paying? At the risk of a huge over simplification here it is. the Republicans removed and or did not enforce regulations in the money, housing and investment markets arguing that a free market would be best for growing the economy. We are now reaping what they've sown.

I do have a question...why is it okay to bail out corporations who made poor investment decisions but not individual home owners? Why bail out AIG but not Lehman?

Wall Street’s Meltdown
Tuesday, September 16th, 2008
Over the last few days, both major party candidates have said Wall Street is out of control, and needs more and better federal regulation. Barack Obama has mocked the concept of the “ownership society,” which is the sensible idea that people should have control over their own lives. John McCain has promised to rein in the “greed” and “self interest” on Wall Street. Both promise a tighter regulatory structure, as do leaders of both parties in Congress.

Here’s my question: The federal government is currently running a $400 billion deficit. If we never add a new federal government program, taxpayers are still on the hook for $59 trillion in unfunded future Medicaid, Medicare, and Social Security liabilities.

Nevertheless, both McCain and Obama are still making wildly expensive promises, and proposing a wide array of new federal programs. Not exactly the models of fiscal restraint, these two.

Yes, markets can be brutal. And it’s never pleasant to watch a correction unfold in real time. I’m certainly dreading the sight of my next 401(k) statement. But even the shadiest of corporations wouldn’t attempt the the shenanigans the federal government employs to hide its liabilities from taxpayers. When it comes to cooking the books, Congress can throw down with Bobby Flay. When it comes to solvency…well…$59 trillion.

All of which makes it a pretty dubious proposition that we’d be better off today if only we’d given more power to our noble politicians to safeguard the public interest from greedy corporations.



http://www.theagitator.com/2008/09/16/wall-streets-meltdown/


Good ole Radley Balko, who just so happens to be a Fox News contributor, wrote this gem.

Does Rupert know that he has someone on the pay roll telling the truth? LOL!

AIG is the biggest insurer.

the loan is at +8% over LIBOR.

The Federal Reserve can't do that good selling treasuries.


The interest alone is worth more than 6 billion a year in interest income payable to the US Treasury.

cool. huh?

Unless AIG still tanks.

it's assets won't.

The actuaries of the policies underwritten can always be accomodated on renewals.

AIG is not required to renew any policy when due without renegotiating premiums.

It is a short term stroke of genius.


smart play.

If the quality of their assets were so great, they wouldn't have needed the government for a loan.

Loan, hell, the Fed printed up all that money and bought themselves 80% of AIG.
Let the consolidation into National Socialism continue...

at 2 cents on the dollar they are great.

don't look at the past, look at the present.

it is what it is.

Hey wouldee...let this one go... he never posts anything positive...that's a lib for yu.

A Lib wouldn't be a lib without the doom & gloom.

I have news for you ladies and gentlemen...those assets...most of them aren't real. There isn't money or property in the bank that can be sold, yes there is some, but it is likely that AIG is not worth what it says it's worth.

I heard an example today that might help. It went something like this. I promise you I have 1mil and will give it to you at the end of the day. You go to the bank and based on the promised asset of 1mil you borrow 2mil. The end of the day comes and I tell you gosh sorry, I don't have the 1mil. Then the bank asks you...where's the 1mil?

It's a house of cards. If and when these previously unregulated companies are examined by outside accountants there may be, very little in terms of assets. Still, we are left holding the bag.

2 cents on the dollar, when the dollar is pretty close to actually being worth about 2 cents.

You can't inflate the amount of currency, when it's backed by nothing,thats what the gold standard protected against.
We might as well start passing off Monopoly money, it's backed by the same thing.

yup. at 2 cents on the dollar, too.

world inc. is coming to a country near you.


just imagine what it will be like when sound business practices don't require a balance sheet and profit is no longer needed to provde liquidity.

just print money and buy up every privately held asset in the free world and Ka-ching!!!!



Now.

let's go get the levers of power and steal the Federal Government back in the voting booths for the little people and put Wall Street in prison.


and all those annoying politicians and professional lawyers, like nobama, into menial task jobs instead of those pesky illegal aliens.

You probush folks are supporting a president who is openly socializing the banking system. Who's the liberal again?

... what color is the sky in your world...?

Sounds like a good idea, but we also got to make sure our vote counts.

Blackboxvoting.org is an excellent resource on how to make sure that happens.

"It's not who votes that counts, it's who counts the votes," Joseph Stalin