posted
A Couple of things I thought that would be interesting to follow, and in my opinion is important for practically every tax paying citizen to know is the cost to us.
Lehman, filing the largest bankruptcy in United States HISTORY is going to need a lot of OUR money. Funny how this works out isnt it?
Anyway I was wanting some help on a master list of companies that have gone down. This list will be growing im pretty sure.
Also what is the average per person amount that all these bailouts will cost? I have no idea. 20K? 50K?
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
| IP: Logged |
posted
apparently? the Fed is offering a back-door taxpayer bailout...
Morning Edition, September 16, 2008 ·
investment banks hard pressed to borrow money — a dangerous situation for the economy.
This weekend, the Fed put a solution in place. It loosened the rules for financial institutions so that the savings side of a large corporation — the same savings side where you bank your paycheck — could more easily lend money to the investment side. Under the old scheme, that kind of in-family lending was severely restricted. In the new world, institutions can lend money back and forth even without rock-solid collateral.
that's very bad
"Think about it as a family," says Ted Truman, a veteran of the Federal Reserve Board who is now at the Peterson Institute for International Economics. "There are probably limits on how much you should lend to your brother or your sister. But under emergency circumstances, you relax those limits and you lend to your brother or sister."
The catch is that if the brother or sister can't pay the loan back, the whole family could go bankrupt. This isn't just a problem for the banks, because the money the savings bank is lending out is actually your savings. Those savings are backed by the Federal Deposit Insurance Corp., the FDIC. But if the FDIC runs short of money, it will be backed by the federal government. The federal government, in this case, equals you, the taxpayer.
Restrictions against in-family lending grew out of the Great Depression, says Art Wilmarth, a professor at George Washington Law School. Many banks failed because they were exposed to risk from their real estate and securities affiliates. Congress built a firewall between the investing and saving arms of financial firms to guard against another contagious collapse.
they've basically removed at least 75% of all the safeguards put in place after the Great Depression.
they were put in place to keep another one from happening and they have been systematically removing those laws since the Clinton Admin...
that's right, Slick Willie bears some blame here too... he signed the Bill that the GOPs passed...
The Glass-Steagall Act is the Depression-era law that separated commercial and investment banking. It was functionally repealed in 1998, when Travelers (the parent company of Salomon Smith Barney) acquired Citicorp. And it was officially repealed in 1999. But recent events on Wall Street-the failure or sale of three of the five largest independent investment banks-have effectively turned back the clock to the 1920s, when investment banks and commercial banks cohabited under the same corporate umbrella.
Glass-Steagall was one of the many necessary measures taken by Franklin Delano Roosevelt and the Democratic Congress to deal with the Great Depression. Crudely speaking, in the 1920s commercial banks (the types that took deposits, made construction loans, etc.) recklessly plunged into the bull market, making margin loans, underwriting new issues and investment pools, and trading stocks. When the bubble popped in 1929, exposure to Wall Street helped drag down the commercial banks. In the absence of deposit insurance and other backstops, the results were devastating. Wall Street's failure helped destroy Main Street.
quote:Originally posted by glassman: It's beginning to look like AIG can't be bailed out...
they don't have enough assets to back a loan and they can only go into conservitorship under bankruptcy....
Breaking news: Feds close to bailout loan package to AIG for 85 billion dollars.
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
| IP: Logged |
posted
congratulations, we the taxpayers all now own 80% of AIG:
Sept. 16 (Bloomberg) -- American International Group Inc., the biggest U.S. insurer by assets, has been offered an $85 billion U.S. loan in return for an 80 percent stake in the company, according to a person familiar with the situation.
and they call this capitalism? sheesh..
i wonder what the terms are?
anybody think they are getting a better rate than GM or Ford will?
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
| IP: Logged |
posted
I rather see the cuplable repay and let all fail that are responsible for greed, bad decisions, etc.. Yes, alot will hurt but there are strong firms that will prevail - but, in the road we are headed we all may fail, maybe the whole country vs the segments that bear responsibility--- My question is, what can avert this tragic road to depression?
I doubt the minds responsible for this can get us out of the mess ---
posted
Ok so what are we looking at per tax payer average for the costs so far of govt backed bailouts?
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
| IP: Logged |
posted
This is sure capitalism right wing scum always yapping about some poor guy getting a bag of grits and saying things like where are we going to find the money for this take there social security.
Did they ever say once where they are geetting the money to give all these banks and investment firms to stay open did they ever say anything about money when they start a war for oil.
We bette watch our money close and make sure these rottrn bankers pay it back. Thats the part they never tell you about how they pay it back or if they do
Posts: 6008 | From: phoenix az | Registered: Mar 2005
| IP: Logged |
quote:Originally posted by CashCowMoo: Ok so what are we looking at per tax payer average for the costs so far of govt backed bailouts?
it's impossible to cacckklack.
the real costs will take years to work thru the system..
the part that just burns me up isn't so much that we are bailing out he companies, it's the sumbeaches that have been taking home 10million$+ dollar paychecks while they plundered US all...
i wonder if they still got bonuses in 2006?
.February 10, 2006 According to the SEC's Litigation Release (here): "The Commission’s complaint, filed today in federal court in Manhattan, alleges that AIG’s reinsurance transactions with General Re Corporation (Gen Re) were designed to inflate falsely AIG’s loss reserves by $500 million in order to quell analyst criticism that AIG’s reserves had been declining. The complaint also identifies a number of other transactions in which AIG materially misstated its financial results through sham transactions and entities created for the purpose of misleading the investing public." http://lawprofessors.typepad.com/whitecollarcrime_****/aig/index.html
no doubt they also used the same tactics to pay less taxes...
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
| IP: Logged |
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
| IP: Logged |
posted
hmmmm... at first glance? this doesn't really sound like a bailout,
it actually sounds alot like a bankruptcy but without the court, and with a loan...
The line of credit to AIG, which is available for two years, is designed to help the company meet its obligations, the Fed said. Interest will accrue at a steep rate of 3-month Libor plus 8.5%, which totals 11.31% at today's rates. AIG will sell certain of its businesses with "the least possible disruption to the overall economy."
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Confused]](confused.gif)
![[More Crap]](graemlins/morecrap.png)
