FED to lend AIG $85 billion
Submitted by GalacticWacko on Tue, 09/16/2008 - 19:05
For 80% stake in AIG
Just heard it on Bloomberg.
THE FED is growing like the friggen borg!
So let me guess this right...?
The FED creates the 85 large by pressing enter on a keyboard. Then by doin so they obtain 80% of the world's largest insurance company. Thus, they own 80% of the company they just loaned money to. So they write their monthly payment out to themselves/// at interest?
Am I in the Twilight Zone?
Here is a link that is also posted below
http://news.yahoo.com/s/nm/aig_loan_dc
»
Once they own it all
My heart belongs to Ron Paul, but for now my ass belongs to Chuck Baldwin, www.baldwin08.com
that is when we are screeewed. It is unreal. These assholes know how, what, and when to make this shit happen. Once they own it all, our money will probably become a card so they can track every expenditure in our lives, and of course shut it off if we won't get chipped so we won't be able to buy food and other necessities. This is all about control and future control.
Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine
The R3volution requires action, not observation!!!!
If one state in the Union
If one state in the Union just decided it was going to say f*** it, we're printing our own money, legal or not (is it?) - I'd move there tomorrow.
Its time to go back to Colonial Scrip - just enough circulated to facilitate trade. People were prosperous and happy then.
Alcohol, Tobacco, and Firearms should be a convenience store, not a government agency.
make it happen
A state or city could start to write contracts with an option to pay in gold/silver coins from the US Mint. This would not be a new currency, so it should work OK without federal interference.
This would break the Fed's grip on our economy. Please get yourselves elected to city council and make this happen within your city! It really is as simple as:
1) get elected
2) educate your peers on the council
3) write new town contracts with a clause that would allow (not force .. ease into it) payment in us mint coinage.
I'm have completed step 1. I will let everyone know when I complete step 3. This may take five more years...
http://FlipFlopRomney.blogspot.com
step 2.5
fire the city manager
Explore Orthodox Christianity
Here's Karl Denninger's take on this
Very informative, as usual: http://market-ticker.denninger.net/
I read him daily!!!! I
I read him daily!!!!
I highly recommend everyone else does too.
He is on our side and has over 150k daily readers.
A couple months ago
A couple months ago denninger wrote that someone in the RP office supposedly asked him to stop sending FAXes because denninger is not an RP constituent. That fired up denninger and he unfairly tore into RP.
Anyone can whine and complain, and denninger does a lot of both. He is knowledgeable about the financial shenanigans.
http://FlipFlopRomney.blogspot.com
WHO THE HELL ARE YOU
LOL... been here a while too.
Find out if you have a local militia - http://www.uaff.us/
Real Patriots for 9/11 truth -- http://patriotsquestion911.com/
If we are bailing out AIG, I should at LEAST get free Man U
I should get free Manchester United ticket out of the deal!?!?!
http://www.youtube.com/watch?v=rnH0tGjHm1Q
I say that we ditch AIG and trade for Christiano Ronaldo. Maybe we'll get a world cup out of it!
the fed is an 80% shareholder
so, lemme guess, the good businesses will be eventually sold off for a song and we will own and be on the hook for the crappy obligations?...sickening, becuz these people knew that they were too big to fail and therefore behaved recklessly and cashed in as they did it.
If this happened in China, you'd see the executives hangin from the chandeliers in the executive washrooms. WHO IS GONNA PAY FOR THIS IN THE GREAT USA? No one but us chickens.
socialized losses
Right, the profits are private and we socialize the losses. Good to be king.
Where is the law? Why are these executives not in jail?
http://FlipFlopRomney.blogspot.com
Strange, but doesn't it seem
Strange, but doesn't it seem like the FED is now doing basically the same thing as all these other companies have done that got them into trouble in the first place by creating a huge bubble encouraged by the FED. The FED is not all-powerful, it too has a particular fragility, a weakness that is based in confidence.
“Men do not willingly read unpalatable truths of themselves. The people like those best who fool them most by pandering to their vices and flattering their foibles”—Admiral Raphael Semmes.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
lol so now the fed owns our
lol so now the fed owns our mortgages, and now it owns our insurance. people dont care. this world is lost. lets just hit the fucking reset button and let god start over on some other planet in some other corner of the universe.
Last month the Fed also
Last month the Fed also traded for car loans. That's not going to work out for them. I mean us.
Wow, now I own car loans, house loans, and AIG the world's largest insurance agency.
http://FlipFlopRomney.blogspot.com
Looks like a mad rush
to consolidate. In seven months they have taken Bear Stearns, Indy Mac, Freddie, Fannie, now AIG. We will see what financial institutions, auto makers, etc. will be scooped up in the near future. If you didn't know they had our best interest at heart and coming to the rescue of the economy, one would almost think it was planned this way. Hmmm
i had the very same
i had the very same intuition. sadly it didnt kick in until earlier today though. far too little too late. but i suppose im still relatively young.
How about a law
that forbids taxpayer money and other government revenue can't be used for non governmental affairs and can't be used to bail out for private business.
but then ...
you'd need people in gov't who abided by or enforced the law when it was inconvenient.
Enforce the law. Like the
Enforce the law. Like the Constitution?
http://FlipFlopRomney.blogspot.com
Change the title: Taxpayers agree to loan to AIG
This is the true scenario. We are now on the hook for the loan and will undoubtedly pay the interest on the new 85$ created out of thin air.
Let the Fed loan the money
out their own private corporate funds.
So the Fed is an obscure private institution.
It’s as Federal as Federal Express.
We don’t know who their shareholders are and we don’t know how the Fed Chair is appointed (the guy who determines interest rates).
Yet they print our money and charge the taxpayers billions in interest for doing so.
Well wouldn’t cha know it , they just bought 80% of AIG for $85 Billion of taxpayers money.
At $10 Trillion of debt, every kid born in the US automatically owes somebody $30,000.
Is this a great system or what?
GK
The Fed Chair is appointed
The Fed Chair is appointed by the government, hence the reason it is quasi-private/quasi-governmental. However, the list of potential candidates to pick from for appointment comes from the Federal Reserve. Go figure!
Also, the Fed doesn't actually do any physical printing of money.
Lastly, all the interest above and beyond the costs of running the Fed are deposited back into the Treasury. What the costs are vs amount of interest received I'm not sure of.
Ya, this system sucks!
approved by Pres
The Fed picks their candidate. Then the President rubber-stamps the pick.
http://FlipFlopRomney.blogspot.com
Yes
the chair is appointed by the president for a 4 yr term. I do not know if there is any provision for removing him.
The Fed was created to take the most important decisions related to the livelihoods of American citizens out of the hands of their elected representatives (who could not be trusted as much as a banker, gag), and into the hands of potentially one man, unelected and working for an entity owned by the banking community (who make their money by using money deposited by the citizens).
Nice free democratic country ya got there.
Hang on here...
THE FED printed the money and THE FED took over 80% of AIG.
THE FED is a private bank. Thus, WE THE PEOPLE don't owe the money. Right? Maybe I am confused.
I can see when they print the money for STIMULUS checks. But how do we owe the money?
An act of Congress is needed for that move. Like the HOUSING BILL.
This is just THE FED making a power grab. I don't think this move is legal?
Does my burka make my butt look fatwa?
Does my burka make my butt look fatwa?
and here comes the taxpayer!
http://ftalphaville.ft.com/blog/2008/09/17/16019/the-feds-ru...
we owe, we owe...its off to he!! we go...
good question
So the fed bank balance sheet is funded by the mandatory monetary reserves from member banks. And this cash is there to backstop banks, or be lender of last resort. Thats a huge pile of moolah that is heavily invested in US govt paper. And the FR sets the rate it will lend to member banks, which influences rates in general. And it buys or sells treasuries to effect the rate of credit creation.
I think one issue that people can have is that the fed reserve was intended to support member banks which are subject to close regulation, but is now being used to prop up huge non-member unregulated institutions that have ponied up zero toward the reserve, aka the shadow financial system. They are also doing this by swapping out high quality investments for illiquid investments, weakening the FRs ability to fulfill its primary mission in the future.
I think its just that feeling of being had by Wall Street that is so galling (beyond the who now owes who question), although you'd think we would be used to it.
The AIG example seems to fit nicely with Murray Rothbard's
explanation of how the Fed can create money out of thin air. Read Dr. Rothbard's example and plug in "AIG" and the name of some bank (real or imagined) to see the effect of the transaction on the money supply.
http://www.lewrockwell.com/rothbard/frb.html
In particular, refer to the section of the article on "Central Banking".
_________________________________________
"An economy built on fiat money is a society on its way to ashes."
_________________________________________
"An economy built on fiat money is a society on its way to ashes."
Got to love this headline..
Fed shows tough love and holds key rate steady
By JEANNINE AVERSA, AP Economics Writer Tue Sep 16, 4:29 PM ET
WASHINGTON - Showing a tough love stance for now, Federal Reserve Chairman Ben Bernanke and his colleagues decided to keep a key interest rate steady Tuesday. They acknowledged stresses in financial markets have grown, though, and hinted they stood ready to lower rates if needed.
oh, the rubes are ripe for fleeecing.