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 ...
>> 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.
you know what? I’m getting pissed off. There is no accountability and consequences anymore.
"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
Hope we got a good interest rate
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.
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.
$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?
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.
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
I guess I’m too generous as well. So what if I cannot eat in six months...
Can't wait to see the NYT headline.
Exchanging corporate bankruptcy for personal bankruptcy when the tax bill comes due...
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???
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.
..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...
Re: he US taxpayer will bail out one company after another
Is it any wonder the US dollar is dropping?
Not one cent until Franklin Raines, Jamie Gorelic, and Johnson dis gourge.
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?
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