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What has changed since April 2009,
Santelli felt the national outrage over the bailouts and the immigration invasion,
His timing was perfect.
Paulson came storming into Bush 43s oval office his hair on fire calling for 787 billion helicopter cash that he alone could sprinkle to his buddies.
Paulson, a Goldman Sacks guy.
To put the ‘financial chrisis in perspective, follow the money. As always.
Paulson first idea was for him to buy and segregate the stinky CDOs. The banks wouldnt sell those stinky loans at the cheap price Paulson offered. They scrapped that idea
Next he gathered the banks and told them they had to accept huge cash amounts, as loans, that were secured by warrants, and that the banks could not repay without Paulsons permission.
The BBT guy told Paulson not no but hell no. Paulson told him he would yank the banks charter. The BBT guy fumed, walked out and quit the bank. He knew this was a scam.
BBT along with others had not played the dirty CDO game, their loan portfolio was solid and performing. Their capitolization was solid.
Contrast that with Goldman Sacks, Bear Sterns, Lehmann Bank of America and City group, the small bunch of idiots that did play CDO monoply.
Lehmann levered their CDOs 40 times, just nuts. As did the others, just not as bad.
While no one was looking Paulson took the discount rate to zero, banks could borrow from the federal reserve at zero interest.
Goldman Sacks wasnt a bank, they were broker/dealers. They couldnt access the fed window. In 2 days Goldman had a national bank charter, and full access to the free money.
Goldman had bought ‘insurance’ for a larger portion of their CDOs from AIG. As soon as AIG got their bailout money, Goldman made a claim of 45 billion on AIG. The next day, without investigation, settlement talks AIG paid 45 billion to Goldman
By June of 2009 the stock market was recovering from the Hogan bottom of 666 on S&p, our national nightmare know as tge Obama years had gathered our attention. Paulson the ok for the banks to repay the bailout money and redeem the warrants.
Its critial to notice who didnt need the bailouts and who repaid
BBT paid in the first day allowable. They had taken the money, parked it in treasuries and never used sny of it.
Ditto US Bank, PNC and a few others.
Goldman was still in the soup. Buffett lent an amount and took warrants at 117 a share.
City stock got to single digits.
Had Paulson dud nothing the banks who played CDO games would have bern hurt, some would have disappeared, but the banking system was never in desperate trouble. BBT customers could still access their ATMs, (that was the claim Paulson made that let me know this was a hoax.
AIG was an insurance company. Why did they get a bailout? CDO insurance was just an insurance policy, that AIG didnt reserve for. Who was the New York insurance commisioner who was the attorney general.
In my state, if an insurance company sells policies they need to reserve a stated amount, if the dint we take drastic and immediate action.
The hoax was was above McCains pay grade, he look and was lost, so we get Obama and Goldman gets bailed out. The perfect twofer