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Tab for Government Rescues Rises to $900 Billion (Taxpayers once again!)
cnbc ^ | 9/17/2008 | Staff

Posted on 09/17/2008 11:29:30 AM PDT by Red in Blue PA

The U.S. Federal Reserve stepped in to rescue insurance giant American International Group from bankruptcy with an $85 billion loan on Tuesday, the latest in a series of bailouts and loans for the financial and housing sectors.

The action brings the total tab for government rescues and special loan facilities this year to more than $900 billion.

(Excerpt) Read more at cnbc.com ...


TOPICS: News/Current Events
KEYWORDS: economy; govwatch; housingbubble
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I am more generous than I thought.
1 posted on 09/17/2008 11:29:30 AM PDT by Red in Blue PA
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To: Red in Blue PA

>> I am more generous than I thought.

Ha!

I’m not that generous — but I can’t seem to ignore that gun muzzle in my back, so I guess I’ll have to let the feds dig around in my pocket whether I like it or not.


2 posted on 09/17/2008 11:31:33 AM PDT by Nervous Tick (I've left Cynical City... bound for Jaded.)
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To: Red in Blue PA

you know what? I’m getting pissed off. There is no accountability and consequences anymore.


3 posted on 09/17/2008 11:31:56 AM PDT by Ancient Drive
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To: Red in Blue PA
Wow... all this to avoid bankruptcy. Taxpayers will be on the hook for even more after the election.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

4 posted on 09/17/2008 11:33:08 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Red in Blue PA
I am more generous than I thought.

Hope we got a good interest rate

5 posted on 09/17/2008 11:34:03 AM PDT by Realism (Some believe that the facts-of-life are open to debate.....)
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To: Ancient Drive
The only accountability left in this country is between the lobbyists and their congress critters.

Yes, I am very cynical about "all" politicians these days.

We are only voting to see who gets to screw us for the next four years.

6 posted on 09/17/2008 11:34:28 AM PDT by Texas_shutterbug
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To: Ancient Drive

All the heads of these companies who made $20M a year, should be forced to give back 90% of what they made and their bonuses too.

Only THEN will there be accountability, and you will see fewer companies take risks which may doom them.


7 posted on 09/17/2008 11:35:36 AM PDT by Red in Blue PA (Now you know why the needles on compasses point north - Sarah Palin.)
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To: Red in Blue PA

$900 billion rescue / $13.8 Trillion Economy =

7% Bailout.

Do you feel 7% poorer? You are.

Conservatives complain about wealth transfers. Here’s one of the biggest ever executed.

Where is Ben Bernanke’s head? Why is it not on a figurative platter?


8 posted on 09/17/2008 11:35:37 AM PDT by Uncle Miltie (Palin for President! (Who was that old fogey she was with?))
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To: Red in Blue PA
Now Treasury is bailing out the fed.
9 posted on 09/17/2008 11:35:45 AM PDT by TheWasteLand
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To: goldstategop

Here’s my one and only question...over the past ten years...how much has AIG paid for tax, in relationship to their profit? When your answer is less than $50 million a year...I’d basically turn to AIG and let them know they can have what they paid in taxes for ten years, as a loan...but not a penny more. I’m betting they paid next to nothing on taxes, and deserve no real help from the government because of that.


10 posted on 09/17/2008 11:36:15 AM PDT by pepsionice
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To: TheWasteLand

Actual press release:

September 17, 2008
HP-1144

Treasury Announces Supplementary Financing Program

Washington- The Federal Reserve has announced a series of lending and liquidity initiatives during the past several quarters intended to address heightened liquidity pressures in the financial market, including enhancing its liquidity facilities this week. To manage the balance sheet impact of these efforts, the Federal Reserve has taken a number of actions, including redeeming and selling securities from the System Open Market Account portfolio.

The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve. The program will consist of a series of Treasury bills, apart from Treasury’s current borrowing program, which will provide cash for use in the Federal Reserve initiatives.

Announcements of and participation in auctions conducted under the Supplementary Financing Program will be governed by existing Treasury auction rules. Treasury will provide as much advance notification as possible regarding the timing, size, and maturity of any bills auctioned for Supplementary Financing Program purposes.

http://www.ustreas.gov/press/releases/hp1144.htm


11 posted on 09/17/2008 11:39:04 AM PDT by BGHater (Democracy is the road to socialism.)
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To: Red in Blue PA

I guess I’m too generous as well. So what if I cannot eat in six months...


12 posted on 09/17/2008 11:48:44 AM PDT by Tolerance Sucks Rocks (Drill Here! Drill Now! Pay Less! Sign the petition at http://www.americansolutions.com/)
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To: Red in Blue PA
$500 billion for Freddie, Fanni and the FHA.

Can't wait to see the NYT headline.

13 posted on 09/17/2008 11:50:34 AM PDT by Aquinasfan (When you find "Sola Scriptura" in the Bible, let me know)
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To: goldstategop

Exchanging corporate bankruptcy for personal bankruptcy when the tax bill comes due...


14 posted on 09/17/2008 11:50:52 AM PDT by Tolerance Sucks Rocks (Drill Here! Drill Now! Pay Less! Sign the petition at http://www.americansolutions.com/)
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To: Red in Blue PA

Do you think the MEdia will even DARE to ask how all these prominent Democrats like the Clinton’s, Pritsker, Rains, Gorelick, Rubin, Reich and others got FILTHY RICH from the Sub-Prime mortgage scams???


15 posted on 09/17/2008 11:51:43 AM PDT by tcrlaf (SARAH PALIN-The American Everywoman (Yes, You Really CAN!))
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To: Uncle Miltie

I doubt this figure. Most of the special lending facilities instituted are revolving. That is the Fed loans, say $20 billion to Merril Lynch who then repays the loan in 28 days, in part by borrowing another $15 billion.

You add that up and it’s $35 billion, but in fact at the end of the second transaction the Fed is only holding a $5 billion note.

It is only if these entities start defaulting that the Fed actually loses all of that $900 billion.

In the case of AIG the Fed has loaned them $85 billion (at a very high interest rate). Now they are going to watch AIG sell off their assets. As they do the $85 billion will be repaid. In then end it will go to zero and a much smaller company will be returned to shareholders.

It is only if selling off every assett fails to deliver $85 billion that FedGov takes a loss and taxpayers own the bad loan.


16 posted on 09/17/2008 11:51:43 AM PDT by Jack Black
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To: Red in Blue PA

..and oil is up 5 bucks, on the good feelings that the US taxpayer will bail out one company after another, and take it up the a$$ any chance our leaders can give it to us...


17 posted on 09/17/2008 11:56:08 AM PDT by Fedupwithit (Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15)
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To: Fedupwithit

Re: he US taxpayer will bail out one company after another

Is it any wonder the US dollar is dropping?


18 posted on 09/17/2008 11:57:40 AM PDT by Red in Blue PA (Now you know why the needles on compasses point north - Sarah Palin.)
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To: Red in Blue PA

Not one cent until Franklin Raines, Jamie Gorelic, and Johnson dis gourge.


19 posted on 09/17/2008 12:01:37 PM PDT by CPT Clay (Drill ANWR, Personal Accounts NOW ,)
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To: Red in Blue PA

When Venezuela or Zimbabwe takes over a corporation, it is called socialism. When the US takes over a corporation (by accepting all its assets for a loan) it’s called a bailout. Is there a difference?


20 posted on 09/17/2008 12:07:25 PM PDT by RFH
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