TurboTax Timmie is going to be on Meet The Press spewing his propaganda about “acting with force”, and “Americans saving more”, while Rush will be appearing on FoxNews Sunday.
Rush Limbaugh on FoxNews Sunday, “Biggest Snatch Of Freedom”:
TurboTax Timmie is going to be on Meet The Press spewing his propaganda about “acting with force”, and “Americans saving more”, while Rush will be appearing on FoxNews Sunday.
Rush Limbaugh on FoxNews Sunday, “Biggest Snatch Of Freedom”:
Hey kids, it’s another Oh My %^&*#%$#^%^ God Moment in our national history! This coming from the guy who couldn’t even figure out how to pay his own taxes. So having too much credit is what got us into this mess, and now another democrat wants to raise the country’s credit limit?
Washington — U.S. Treasury Secretary Timothy Geithner asked Congress to increase the $12.1 trillion debt limit on Friday, saying it is “critically important” that they act in the next two months.
Mr. Geithner, in a letter to U.S. lawmakers, said that the Treasury projects that the current debt limit could be reached as early mid-October. Increasing the limit is important to instilling confidence in global investors, Mr. Geithner said.
The Treasury didn’t request a specific increase in the letter.
“It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations,” Mr. Geithner said in a letter to lawmakers.
Mr. Geithner said the that it is “clearly a moment in our history” that requires support from both Democrats and Republicans for the increase.
“Congress has never failed to raise the debt limit when necessary,” Mr. Geithner said.
The non-partisan Congressional Budget Office said Thursday the federal government’s budget deficit reached $1.3 trillion through the first ten months of fiscal 2009, on track to reach a record high of $1.8 trillion for the 12-month period.
Can we impeach the dipstick in the WH yet and fire the rest of these morons?
As many of my readers know, I live in Hawaii, and I do appreciate all the emails and comments I have received concerned about my family’s safety and the recent posturing and threats coming out of North Korea.
Stop, take a moment, and think. Whom should I be more worried about? The bouffant sporting, pajama wearing crazy with missiles that fall out of the sky, or the punk a** b*tch in the WH who is behaving like a fascist dictator with 21 czars one day, and then a weakling crawling up from the end of the bed to his Saudi masters the next? Hmmm?
(Wow, was that too harsh, or is it just because I have one hell of a cold and I’m pissed that our government is being run by lunatics on their third lives who know just enough to be dangerous to themselves and others, their actions say they have no loyalty to the Constitution and their constituents, AND the Fed and the Treasury are trying to crash our economy through devaluing the dollar through the printing of more and more debt – expected to be $2 Trillion just this year?)
If you were standing in my slippas, exactly whom would you be worried about? I am going to keep centering my attention on Mishy, B. Hussein Obama, Rahm Emanuel, Valerie Jarrett, Timothy Geithner, Ben Bernanke, ACORN, Working Families Party, and every TRAITOR to the Constitution now holding office in the beltway including all those Republicans that have turned tail and run for cover.
How many of you remember Captain Richard Phillips and the Somali Pirates? Go here to refresh your memory on how Bambi choked at using force, and how our military saved Captain Phillips’ life. I am betting that our military is not going to let Pearl Harbor happen again, especially since the CIC appears to be such a military hater.
And for those of you that are concerned about what our government and military are doing about the threats, go here.
(My spousal unit has weighed in with an opinion and he thinks it isn’t too harsh, it’s the truth and a hard commodity to find these days. Hele Mai!)
Timmie is trying to defend The Fed and not doing a very good job of it. Timmie just ain’t that smart even though he does seem to think he is, and in the second video Senator Corker asks for assurances that no one from the White House ends up as the next Fed chairman when Bernanke’s opportunity to crash our economy ends in January, 2010. (That’s my snark, my bad.)
Our founding fathers warned against having a central bank that printed money and loaned it back to us, and each president that even broached the idea of abolishing a central bank ended up 6 feet under. What’s up with that?
I have been studying the 88 page financial reform white pages to see what exactly is hidden inside because you know there is something lurking there that is even more un-Constitutional than the Fed itself. I will post what I find when it makes sense to me, and I can explain it to you.
As for The Fed becoming even more powerful; please, how much more crap are we going to take from this administration before we set them straight? Is this not the same banking cartel that lost/misplaced $9 Trillion dollars, and now would have control over corporations like Target, Harley-Davidson and Pitney Bowes? Is this not the same banking cartel that will issue $2 Trillion of debt this year alone in conjunction with our insane treasury and WH? Why hasn’t Bernanke told Geithner to STOP ALREADY? I know, that’s a stupid question…my bad.
Senator Corker grilling the teenager.
When it comes to central banks around the world, just because “everyone is doing it”, does not make it the right thing to do – just look at what ended up in our White House.
Can we impeach Obama yet?
Is it time to clean house yet?
On Wednesday, TurboTax Timmie and his crew are going to unveil the new financial regulation reforms that they have been talking about since he was installed as Treasury Secretary by the 111th Congress.
If, after reading the next two stories, you still think the Federal Reserve should not be abolished for being the #1 instigator in our economic woes, then I pity you and your declining standard of living.
The Federal Reserve, already arguably the most powerful agency in the U.S. government, will get sweeping new authority to regulate any company whose failure could endanger the U.S. economy and markets under the Obama administration’s regulatory overhaul plan.
Please remember that the Federal Reserve is really a banking cartel; not a government agency, that was created in 1910 on Jekyll Island by NY bankers, and our government does not instruct The Fed; the power flows the opposite direction.
The final plan due to be released on Wednesday — which originally aimed to streamline and consolidate banking and securities regulation in one or two agencies — now is expected to sidestep most jurisdictional disputes and simply impose across the board standards to be applied by all financial regulators, according to administration and industry sources.
The most likely candidate for elimination is the Office of Thrift Supervision, whose failure to detect and forestall problems at Countrywide, IndyMac, Washington Mutual and other freewheeling mortgage lenders is thought to have contributed to the financial crisis.
The decision to concentrate sweeping new powers at the already overstretched Fed is not without controversy. Sen. Christopher J. Dodd, chairman of the Committee on Banking, Housing and Urban Affairs, which must approve any regulatory overhaul, has raised objections to that approach, and so has Federal Deposit Insurance Corp. Chairman Sheila C. Bair.
Ms. Bair advocates an alternative where a council of top bank regulators would make decisions on whether to step in, regulate or close major corporations like the American International Group whose failure posed a risk to the whole economy and financial system. The Fed stepped in to save AIG last year without having such powers, but the result was a costly and muddled bailout that no one wants to repeat.
To accommodate dissenting views, the administration will propose that a council of regulators advise the Fed, although the Fed will have the final say, according to administration officials. The new powers augment the Fed’s existing broad authorities to intervene to prevent crises that could seriously damage the markets and economy.
And now for something totally expected from a banking cartel:
Bank of America’s chief executive Thursday for the first time said publicly that officials in the Bush administration and the Federal Reserve threatened to remove top executives of the bank unless the financial giant merged with the troubled Merrill Lynch for the good of the foundering economy.
Bank of America’s Kenneth Lewis told the House Oversight and Government Reform Committee that the threat was not the deciding factor in the bank’s acquisition of the nation’s largest investment banking firm. But he added: “What gave me concern was that they would make that threat to a bank in good standing.”
Ken? You are a moron! What does being a bank in good standing have to do with threats being made against a private company in a country that has as it’s basis, the Constitution and the Rule Of Law?
The testimony came as the No. 2 Republican in the House said President Obama’s handling of the auto company bailouts was comparable to the strong-arm tactics of Russian Prime Minister Vladimir Putin.
If you have not thrown your support behind Ron Paul and H.R. 1207, now might be a good time before The Fed becomes tired of being a shadow chess player and just strangles the economy and country into submission.
Do you remember when TurboTax Timmie as president of the NY Federal Reserve brokered the original AIG deal of $85 Billion, the sale of Bear Stearns, and allowed Lehman Bros to fail? Since that time, AIG has sucked $182 Billion out of our wallets with somewhere between $62 Billion and $90 Billion going to foreign banks. TTTimmie now wants to be able to seize any large company, and control the flow of money even more, with control being split between the Treasury, the Federal Reserve, and Congress; the institutions that appear to be the three founders of the current economic meltdown. TTT and the Obama administration are dancing on the fine edge in their appearances to the world right before the upcoming G20 meeting on April 2nd.
I was expecting what I read two days ago in the Washington Post:
The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.
The government at present has the authority to seize only banks.
Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president’s Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document.
The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury’s role, are still in flux.
Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill about the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials have said that the proposed authority would have allowed them to seize AIG last fall and wind down its operations at less cost to taxpayers.
The administration’s proposal contains two pieces. First, it would empower a government agency to take on the new role of systemic risk regulator with broad oversight of any and all financial firms whose failure could disrupt the broader economy. The Federal Reserve is widely considered to be the leading candidate for this assignment. But some critics warn that this could conflict with the Fed’s other responsibilities, particularly its control over monetary policy.
The government also would assume the authority to seize such firms if they totter toward failure.
Besides seizing a company outright, the document states, the Treasury Secretary could use a range of tools to prevent its collapse, such as guaranteeing losses, buying assets or taking a partial ownership stake. Such authority also would allow the government to break contracts, such as the agreements to pay $165 million in bonuses to employees of AIG’s most troubled unit.
And then this morning, once again from the Washington Post:
Treasury Secretary Timothy F. Geithner plans to propose today a sweeping expansion of federal authority over the financial system, breaking from an era in which the government stood back from financial markets and allowed participants to decide how much risk to take in the pursuit of profit.
The administration’s signature proposal is to vest a single federal agency with the power to police risk across the entire financial system. The agency would regulate the largest financial firms, including hedge funds and insurers not currently subject to federal regulation. It also would monitor financial markets for emergent dangers.
The administration yesterday detailed its proposed process, under which the Federal Reserve Board, along with any agency overseeing the troubled company, would recommend the need for a takeover. The Treasury secretary, in consultation with the president, then would authorize the action. The firm would be placed under the control of the Federal Deposit Insurance Corp. The government also would have the power to take intermediate steps to stabilize a firm, such as taking an ownership stake or providing loans.
One important difference is that the decision to seize a bank is made by agencies that have considerable autonomy and are intentionally shielded from the political process. Some legislators have raised concerns about providing such powers to the Treasury secretary, a member of the president’s Cabinet.
Our financial system has now been placed in the political arena alongside abortion and taxes….just more items for the politicians to use during elections. Thomas Jefferson is SPINNING in his grave…
If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children wake up homeless on the continent their fathers conquered – Thomas Jefferson
Remember when TARP 1 was supposed to be used to ease the credit crunch and free up money for small businesses? Remember when AIG was considered too big to fail? Now that $186 Billion Dollar Fiasco continues.
A timeline is in order, and I ask that you read this until you understand it. It is time to stop skimming and skipping. What is happening to our country is going on because we have told ourselves that the economic aspects of our lives are just too damn complex to understand. We have allowed people outside ourselves to brainwash us into thinking we are “too stupid”. This is one American that is telling you that 2+2=4, and that the bean counters using red crayons are just trying to brainwash you into thinking that you won’t ever “get it”. It’s pretty damn simple, just take the time, make the effort, ask questions! Unless Turbo Tax Timmie’s IQ approaches 160, he is not as smart as most of my readers.
Last September the government took over AIG in a $85 Billion Bailout:
The U.S. government seized control of American International Group Inc. — one of the world’s biggest insurers — in an $85 billion deal that signaled the intensity of its concerns about the danger a collapse could pose to the financial system.
The step marks a dramatic turnabout for the federal government, which had been strongly resisting overtures from AIG for an emergency loan or some intervention that would prevent the insurer from falling into bankruptcy. Just last weekend, the government essentially pulled the plug on Lehman Brothers Holdings Inc., allowing the big investment bank to go under instead of giving it financial support. This time, the government decided AIG truly was too big to fail.
It puts the government in control of a private insurer — a historic development, particularly considering that AIG isn’t directly regulated by the federal government. The Fed took the highly unusual step using legal authority granted in the Federal Reserve Act, which allows it to lend to nonbanks under “unusual and exigent” circumstances, something it invoked when Bear Stearns Cos. was rescued in March.
As part of the deal, Treasury Secretary Henry Paulson insisted that AIG’s chief executive, Robert Willumstad, step aside. Mr. Paulson personally told Mr. Willumstad the news in a phone call on Tuesday, according to a person familiar with the call.
Mr. Willumstad will be succeeded by Edward Liddy, the former head of insurer Allstate Corp. (Make sure to read this article near the end for info on Mr. Liddy.)
The final decision to help AIG came Tuesday as the federal government concluded it would be “catastrophic” to allow the insurer to fail, according to a person familiar with the matter. Over the weekend, federal officials had tried to get the private sector to pony up some funds. But when that effort failed, Fed Chairman Bernanke, New York Fed President Timothy Geithner and Treasury Secretary Paulson concluded that federal assistance was needed to avert an AIG bankruptcy, which they feared could have disastrous repercussions.
Staff from the Federal Reserve and Treasury worked on the plan through Monday night. President George W. Bush was briefed on the rescue Tuesday afternoon during a meeting of the President’s Working Group on Financial Markets.
Now, however, Mr. Willumstad himself will be leaving, after having been asked to step aside by the Treasury’s Mr. Paulson. Mr. Willumstad, who recently took over as AIG’s chief executive to try to turn around the firm, was surprised by the request. “If that’s what you want, I’ll do it,” he said to Mr. Paulson, according to a person familiar with the call. AIG’s board was unhappy with the decision but felt it had no choice but to go along, as the only other option was bankruptcy.
The fate of a corporate chief executive is normally the province of a board of directors. The decision by the Treasure Secretary to essentially oust Mr. Willumstad underscores further the magnitude of the government’s intervention.
Mr. Willumstad’s departure marks the end of a brief, tumultuous run. He joined AIG as a director in early 2006, after leaving the No. 2 post at Citigroup Inc., and became AIG’s chairman later that year. In June, as AIG was reeling from record losses, the board forced out Mr. Willumstad’s predecessor and gave him the top job. He had planned to unveil his own strategy for AIG on Sept. 25.
By tapping Mr. Liddy as AIG’s next CEO, the government is turning to someone with deep experience in the insurance industry, having served as chief executive of Allstate from 1999 to 2006. He stepped down as chairman earlier this year. Allstate is a different type of insurer than AIG, focusing on selling car and home insurance to Americans, whereas AIG sells an array of insurance policies to individuals and businesses world-wide.
Mr. Liddy also has experience pulling apart empires, having helped dismantle Sears, Roebuck & Co. (from which Allstate was spun off) in the 1990s. Before joining Sears, Mr. Liddy worked under Donald Rumsfeld at drug maker G.D. Searle & Co. Mr. Liddy is on the board at Goldman Sachs Group, the investment bank that Mr. Paulson led before becoming Treasury Secretary.
WASHINGTON/NEW YORK (Reuters) – The government restructured its bailout of American International Group Inc, raising the package to a record $150 billion with easier terms, after a smaller rescue plan failed to stabilize the ailing insurance giant.
The Federal Reserve and the Treasury Department announced the new plan on Monday as AIG reported a record third-quarter loss of $24.47 billion, largely from write-downs of investments.
The new package, at least $27 billion more than was previously extended, will leave the government exposed to billions of dollars of potential losses.
Under the new plan, the government will get a $40 billion equity stake in AIG, spend as much as $30 billion on securities underlying the insurer’s credit default swaps, and spend up to $22.5 billion to buy residential mortgage securities.
It will also reduce a previously announced credit line to $60 billion from $85 billion, and lower interest rates on borrowings. AIG will also accept curbs on executive pay, including a freeze of bonuses for its top 70 executives.
The $40 billion equity infusion comes from the $700 billion financial bailout package passed into law last month.
That package was originally intended for banks, and AIG is the first company other than a bank to get money from it. It was created after the government announced the original $85 billion bailout package for AIG on September 16.
“Today’s action was a one-off event,” Neel Kashkari, the Treasury Department’s interim assistant secretary for financial stability, said at a conference in New York. “It is not the start of a new program.”
NEW YORK (Reuters) – Where, oh where, did AIG’s bailout billions go? That question may reverberate even louder through the halls of government in the week ahead now that a partial list of beneficiaries has been published.
The Wall Street Journal reported on Friday that about $50 billion of more than $173 billion that the U.S. government has poured into American International Group Inc since last fall has been paid to at least two dozen U.S. and foreign financial institutions.
The newspaper reported that some of the banks paid by AIG since the insurer started getting taxpayer funds were: Goldman Sachs Group Inc, Deutsche Bank AG, Merrill Lynch, Societe Generale, Calyon, Barclays Plc, Rabobank, Danske, HSBC, Royal Bank of Scotland, Banco Santander, Morgan Stanley, Wachovia, Bank of America, and Lloyds Banking Group. (With a few exceptions, almost every one of these institutions has been here reading the Monster…)
Morgan Stanley and Goldman Sachs declined to comment when contacted by Reuters. Bank of America, Calyon, and Wells Fargo, which has absorbed Wachovia, could not be reached for comment.
The U.S. Federal Reserve has refused to publicize a list of AIG’s derivative counterparties and what they have been paid since the bailout, riling the U.S. Senate Banking Committee.
Federal Reserve Vice Chairman Donald Kohn testified before that committee on Thursday that revealing names risked jeopardizing AIG’s continuing business. Kohn said there were millions of counterparties around the globe, including pension funds and U.S. households.
He said the intention was not to protect AIG or its counterparties, but to prevent the spread of AIG’s infection.
The Wall Street Journal, citing a confidential document and people familiar with the matter, reported that Goldman Sachs and Deutsche Bank each got about $6 billion in payments between the middle of September and December last year.
Once the world’s largest insurer, AIG has been described by the United States as being too extensively intertwined with the global financial system to be allowed to fail.
The Federal Reserve first rode to AIG’s rescue in September with an $85 billion credit line after losses from toxic investments, many of which were mortgage related, and collateral demands from banks, left AIG staring down bankruptcy.
Late last year, the rescue packaged was increased to $150 billion. The bailout was overhauled again a week ago to offer the insurer an additional $30 billion in equity.
AIG was first bailed out shortly after investment bank Lehman Brothers was allowed to fail and brokerage Merrill Lynch sold itself to Bank of America Corp.
Bankruptcy for AIG would have led to complications and losses for financial institutions around the world doing business with the company and policy holders that AIG insured against losses.
Representative Paul Kanjorski told Reuters on Thursday that he had been informed that a large number of AIG’s counterparties were European.
“That’s why we could not allow AIG to fail as we allowed Lehman to fail, because that would have precipitated the failure of the European banking system,” said Kanjorski, a Democrat from Pennsylvania who chairs the House Insurance Subcommittee.
From one Sunday talk show to the next, they tore into the contracts that American International Group asserted had to be honored, to the tune of about $165 million and payable to executives by Sunday — part of a larger total payout reportedly valued at $450 million. The company has benefited from more than $170 billion in a federal rescue.
In a letter to Geithner dated Saturday, Liddy said outside lawyers had informed the company that AIG had contractual obligations to make the bonus payments and could face lawsuits if it did not do so. (What about the ban on bonuses as part of the original bailout in September? Go back to the top for that quote.)
Liddy said in his letter that “quite frankly, AIG’s hands are tied,” although he said that in light of the company’s current situation he found it “distasteful and difficult” to recommend going forward with the payments.
Liddy said the company had entered into the bonus agreements in early 2008 before AIG got into severe financial straits and was forced to obtain a government bailout last fall.
The bulk of the payments at issue cover AIG Financial Products, the unit of the company that sold credit default swaps, the risky contracts that caused massive losses for the insurer.
March 15, 2009: (ARE YOU READY FOR THIS? Do not EVEN try to tell me that the “New World Order Central Bank Theory” is a conspiracy.)
WASHINGTON/NEW YORK (Reuters) – More than half of the taxpayer money spent to rescue insurer AIG was passed on to Goldman Sachs and several European banks, who benefited from more than $90 billion in payments in the first three-and-a-half months of the government bailout, AIG disclosed on Sunday.
The revelation was another public relations nightmare, coming on the same weekend that the Obama administration expressed outrage over American International Group Inc’s plan to pay massive bonuses to the people in the very division that destroyed the company by issuing billions of dollars in derivatives insuring risky assets.
AIG, an embattled insurance giant that has received federal bailouts totaling $173 billion and is now paying $165 million in employee bonuses, is at the heart of a global financial crisis that President Barack Obama is trying to address with plans for trillions of dollars in spending.
As part of those efforts, Obama will announce steps on Monday to make it easier for small business owners to borrow money, officials said. (…and this is what they should have been doing all along!)
But the revelations that billions of U.S. taxpayer dollars were funneled through AIG to Goldman Sachs — one of Wall Street’s most politically connected firms — and to European banks including Deutsche Bank, France’s Societe Generale and the UK’s Barclays was likely to stoke further outrage at the entire U.S. bank bailout.
While the payments were not illegal, the fact that billions of dollars given to prop up giant insurer AIG were then transferred to European banks and Wall Street investment houses could raise new doubts about whether the rescue was really economically necessary. (Ya Think?)
Goldman Sachs, formerly led by Henry Paulson who was treasury secretary at the time of the original AIG bailout, could not immediately be reached for comment. Deutsche Bank and Barclays declined to comment.
As it seeks to ease the credit crunch that was the original target of the Troubled Assets Relief Program (TARP), the Treasury will also offer more details this week about the workings of proposed public-private partnerships to take toxic assets off banks’ books, including a timeframe, a senior department official said on Saturday. (Remember TARP 1 was to ease the credit crunch?)
Through three separate types of transactions, Goldman received an aggregate $12.9 billion. Among European banks, SocGen was the biggest recipient at $11.9 billion, Deutsche got $11.8 billion and Barclays was paid $8.5 billion.
The list of counterparties was made public by AIG amid growing pressure on the insurer to come clean about the true beneficiaries of the bailout ahead of a congressional hearing on Wednesday at which AIG chief executive Edward Liddy is slated to testify.
AIG says emergency aid used to pay other banks
NEW YORK (AP) — American International Group Inc. used more than $90 billion in federal aid to pay out foreign and domestic banks, some of whom had received their own multibillion-dollar U.S. government bailouts.
The embattled insurer’s disclosure on Sunday came amid outrage on Capitol Hill over its payment of tens of millions in executive bonuses, and followed demands from lawmakers that the names of trading partners who indirectly benefited from federal aid to AIG be made public.
The company, now about 80 percent owned by U.S. taxpayers, has received roughly $170 billion from the government, which feared that its collapse could cause widespread damage to banks and consumers around the globe.
“The ability of AIG to meet its obligations is important to the stability of the U.S. financial system and to getting credit flowing to households and businesses,” Federal Reserve spokeswoman Michelle Smith said.
Some of the biggest recipients of the AIG money were Goldman Sachs at $12.9 billion, and three European banks – France’s Societe Generale at $11.9 billion, Germany’s Deutsche Bank at $11.8 billion, and Britain’s Barclays PLC at $8.5 billion. Merrill Lynch, which also is undergoing federal scrutiny of its bonus plans, received $6.8 billion as of Dec. 31.
The money went to banks to cover their losses on complex mortgage investments, as well as for collateral needed for other transactions.
Other banks receiving between $1 billion and $3 billion from AIG’s securities lending unit include Citigroup Inc., Switzerland’s UBS AG and Morgan Stanley.
Municipalities in certain states, including California, Virginia and Hawaii, received a total of $12.1 billion under guaranteed investment agreements.
Our government and the privately held Federal Reserve Banking Cartel give money to AIG, and they gave it to not only FOREIGN BANKS, but they gave it to other American Banks that already were getting bailed out by us. What are we going to do about it?
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