The Never-Ending Bailout - AIG

[slipslidingaway]

March 3, 2009
Editorial

http://www.nytimes.com/2009/03/03/opinion/03tue1.html?_r=1

"...It was the fourth time since September that taxpayers have been called upon to rescue A.I.G. from collapse. It brings the bailout commitment for that one company to some $160 billion.
In a joint statement with the Federal Reserve on Monday, the Treasury justified the move, saying that “the potential cost to the economy and the taxpayer of government inaction would be extremely high.”

That’s a textbook rationale for any bailout. What no one is saying — the Bush folks wouldn’t, and the Obama team seems to have taken the same vow of Wall Street omertà — is which firms would be most threatened by an A.I.G. collapse. The Treasury and the Federal Reserve noted in their statement that A.I.G. is a “significant counterparty to a number of major financial institutions.”

That means that by enabling A.I.G. to avert bankruptcy proceedings, the taxpayer is also bailing out — whom exactly?

The A.I.G. bailouts fail the basic test of transparency: Who ends up with the money? Major financial institutions are not innocent victims of A.I.G.’s demise. They are sophisticated investors, and they should have known the risks being taken — and who profited mightily from the relationship before it all came crashing down..."

[Mr. Hyde]

1. Reminds me of a diagnosis where you have about 1 year left to live. Use that year wisely.

or don't. It's up to you. I've made my preparations, I assure you.

[slipslidingaway]

3. Other than not having enough gold buried in the yard :)) I think

we'll be OK.

[prairierose]

2. I think that it may be time to let nature take its course...

if AIG has not been able to stabilize their business with all of the taxpayer they have been given then maybe we should let them fail. Or maybe we could nationalize them and the executives replaced by people who might know something about restructuring a bankrupt company.

Just a thought.

[slipslidingaway]

5. It's time to tell the American people who is on the other side

of these agreements, tired of the slow bleed and lack of transparency.

[Mr. Hyde]

9. Can we have our money back first?

probably not.

[leftstreet]

4. There's gotta be something they're not telling us

Ya think?

"significant counterparty to a number of major financial institutions"

:wtf:

[slipslidingaway]

6. Yup, we are supposed to write a check for billions and say we

trust you.


Same here..

"My question to you is, will you tell the American people to whom you lent $2.2 trillion of their dollars?" Sanders asked, referring to the size of the Fed's balance sheet."

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5181055&mesg_id=5181055


And who are these hedge funds and other investors mentioned in this article from yesterday???

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8242645&mesg_id=8242645

http://www.bloomberg.com/apps/news?pid=20601087&sid=aRRVAbvwBqpw&refer=home

"$200 billion in loans to hedge funds and other investors - TALF

The Federal Reserve said its $1 trillion program to prop up the market for auto and business loans will start disbursing funds March 25 and will probably accept securities backed by vehicle-fleet and equipment leases...


...The TALF will start by offering $200 billion in loans to hedge funds and other investors aimed at jumpstarting lending to consumers for autos, education and credit cards and to small businesses. The program also will help auto dealers finance the cars on their lots.

Protect the Fed

Treasury is providing $20 billion in capital from the Troubled Asset Relief Program to protect the Fed from losses. Treasury Secretary Timothy Geithner plans to increase the contribution to $100 billion, letting the Fed expand the program to $1 trillion and add other assets such as commercial mortgage- backed securities..."

[slipslidingaway]

7. Thanks for the recs, I thought this would sink. n/t

[No DUplicitous DUpe]

8. AIG owes you $500.00....

A column I posted earlier today

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x5186322

[Genghis]

10. My angry youtube poem about those responsible for this mess.

http://www.youtube.com/watch?v=EVWcK9aWhqs

You won't be disappointed.

Unless you're Rush Limbaugh.

[slipslidingaway]

13. "The House That George Built" - that is great....

there is a forum for political videos and you might want to post it there as well.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=385

Welcome to DU

:hi:

[Yes We Did]

11. Too Big To Fail=

A stock I must own!

[slipslidingaway]

12. Excellent :) n/t

[slipslidingaway]

14. Senator Cantwell: Where's the AIG Money Going?

http://www.talkingpointsmemo.com/archives/2009/03/cantwell_wheres_the_aig_money_going.php

"Here's an exchange from this afternoon between Sen. Cantwell and Secretary Geithner. Cantwell asks the question we and a lot of others have been asking: where's all the money going? Who are the counter-parties?

We grabbed this exchange because I want to flag that this question appears to be gathering momentum up on the hill. But the exchange itself is interesting for two reasons. First, Geithner simply won't engage. He just ignores the question. But in the course of doing so he provides the administration's rationale for why we have no choice but to keep shoveling money down this hole. But clearly, talk to the hand on the counter-parties ..."


Thanks to antigop on the SMW thread for the above link.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3768332&mesg_id=3768764

"Watch the video.

And here's a question...did AIG have re-insurance? If so, what company was providing re-insurance? Or did they just assume they didn't need re-insurance because home prices would continue to go up?"

[slipslidingaway]

15. ....n/t