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This makes it obvious that our US government has found a way to enact the socialism on every one of these bailouts anyway – without Congressional approval, without the approval of the American people.
Fed in $85bn AIG rescue deal
By FT Reporters
Published: September 17 2008 03:00 | Last updated: September 17 2008 03:00
The US Federal Reserve last night struck a deal to take control of AIG in return for an $85bn loan to stave off a collapse of the giant insurer that plays a crucial role in the global financial system.
Under the plan, the latest dramatic intervention by the US government to combat the global credit crisis, the authorities will receive equity giving them a 79.9 per cent stake in AIG. +In return, the insurer would receive a bridge loan of $85bn to keep it afloat until it could dispose of billions of dollars in assets.
Analysts said the government decision to let Lehman and WaMu fail had deepened investor fears over the stability of the US financial system and contributed to the near freezing of credit markets.
However, in return for that cap on losses, Citi agreed to give the FDIC a $12bn stake in the form of preferred shares and warrants. Although the FDIC will not hold any voting rights, the arrangement could turn the government entity into one of Citi’s largest shareholders.
Under the deal, Citi will shoulder losses of up to $42bn on Wachovia’s $312bn portfolio of troubled mortgage and property assets, with the Federal Deposit Insurance Corp, a banking regulator, picking up the tab beyond that.
The Citi takeover will almost wipe out Wachovia’s shareholders, who will receive just $1 in Citi stock for shares that were worth $10 each on Friday, but protects depositors holding more than $400bn with the North Carolina-based lender.
Article from Financial Times,
Citi rescues Wachovia in $2.2bn takeover
By Francesco Guerrera and Joanna Chung in New York and Krishna Guha in Washington
Published: September 29 2008 14:24 | Last updated: September 30 2008 00:16
An interactive map of some items in the bailouts that are already in place –
– So by using the FDIC to do the exact same process that the current bailout plan (which just failed to pass Congress,) intended to use – the Feds are buying an equity stake in companies anyway using the Paulson plan. Now, without the approval of Congress, without the approval of the American people – in every way these actions are being taken – without the approval of the US Constitution, the Laws of the United States of America, and the founding doctrines of our government and economic systems.
They are doing whatever they want the way they want – and that which is socialism, it is the same old USSR, instead of the USA and unfortunately, It is illegal.
I think they are trying to push this bill through the Congress to cover their collective asses because what they have done is a definite conflict of interest in the most unprincipled and criminal manner. The use of their offices to do this and provide unfair advantage to some and nothing for others – at their discretion, is the same old tyranny of absolute power that has corrupted absolutely.
And, on top of being socialism, when not one of us have had the opportunity to say – yay or nay about that becoming our practicing principle as a nation – the dramatic ripple effects around the world weren’t caused by the bailout package but by the insistence on profiting illegally at the expense of everyone else. The law is clear about collusion, it is clear about allowing counterfeit forms of currency to be created and sold in the United States. Well, these credit default swaps are a form of counterfeit currency. They were sold for value and valued asset in return – they were not legally made, nor secured, nor sanctioned, nor regulated. It was illegal when it was done and is now.
And, instead of doing what Congress said or the American people said, the Feds are using our accounting standards group (outside of the regulating agencies) to remove the mark-to-market rule that shows a truer value of the worthless unregulated counterfeit securities. The FDIC is being used to make bailouts while buying the companies and taking the same measures through any agency, organization, department or whatever other manner they would choose.
This is not acceptable for the enforcement arm of our government that holds any of us for the least infraction of driving penalties or anything else of even the most obtuse regulations subjecting any of us to fines, time in jail, destruction of our property, search and seizure, unreasonable denial of going on with our lives in any normal fashion – but then here we are and the same ones that should be enforcing laws against and about this financial corruption is bailing them out and insuring their continued illegally made profits.
– Written by Cricket Diane C “Sparky” Phillips, 10-01-08, USA
And everytime I see another $50 billion here and $168 billion here and Fannie Mae with another however much each month – INFINITELY. Its as if the Fed’s hands are reaching in every pocket, closet, agency, department, program, budget, and government – Federal and State excuse for a good time slush fund and handing out money with a sneaky purchase to rights in each thing as they go.