Groovygirl has been following the questioning of the AIG bailout. Several items have come to my attention that you will never see from the talking heads on TV. These facts prove that the bailout of AIG is criminal, and the entire bank bailout should be earnestly questioned in detail.
Zerohedge.com got the “Schedule A” from AIG (the one they have been trying not to release because it affects national security or something). This is a legal tax document required by law showing the list of beneficiaries of the AIG bailout of 100% on the dollar. You have no doubt heard that Timmy demanded 100%, when the investors on this list were willing to take less. Criminal. Timmy should be fired immediately. Click here. And here. Zerohedge.com has been on top of this story since day one. Excellent job!! Most of the investment and legal jargon will be alien to you, read it anyway. You will get the point.
Then there is an excellent ppt presentation of “follow the bailout money”. Apparently the gov committee assigned to do just what is in this presentation are not done yet. Not expected to be done until end of 2010. Here it is for your review by non-gov. “It takes a Pillage” is easy to follow. You will never see the truth from Big Media, but you can here.
We all know we got screwed as taxpayers. Now here is the proof. The very sad part is the Media did not question the bailouts at the time OR report now when the proof is all over the internet. Since there is no pressure from Big Media and Congress seems to be dysfunctional at best, justice for the crime of the century will never come.
In this environment you will have to hunt for and discern the truth for yourself. You will also be responsible for protecting your investments. Get the education and tools needed to do these two things for yourself and your family.
John Williams with Shadowstats.com was interviewed on Goldseek Radio. He reviews the fundamentals, the double-dip depression, and the dollar. He uses the real stats to help us understand what is really happening and cut through the F-TV double talk.
Lots of free stuff on the shadowstats.com website. The subscription for the more recent information is well worth the money. I get no kick back for saying that.
Very important-side musing: Money markets can now suspend redemptions. Repeat, money market funds are not as liquid as in the past. Click here. (fixed the link) (And make sure you read the comments on this post.) As a result, 30-day Treasuries have turned a negative interest rate yesterday as investors pile into something that is liquid even if they lose money on the deal. This is what I meant when I said that it is more important to have savings preserved and available vs. earning a return. A million dollars in a money market fund that you can’t redeem (when you need it) is really zero dollars. Investment priorities have changed for the long-term. Understand this shift.
Since the Fed can’t lower rates anymore and can’t raise (for fear of collapsing the economy), they are opting for changing the definition of interest rate or creating another interest rate.
So moving forward (at some point, not today) “official” interest rates will be a spread. And guess who gets to borrow at the lower end of the spread? GS and gov. And guess who gets to borrow at the high end…everyone else.
Anyway, it’s all noise. This will do nothing to help the average American get a lower rate on their mortgage. This changes nothing. The housing market and commercial real estate market are still doomed.
Make sure that in the future any stats that include an interest rate in its calculation is clear about what interest rate they are using.
Click here for the detail.
Side musings: Elizabeth Warren was on Jon Stewart’s show last night. Once again she gives a very good, simplified view of the banking f-up. She also encourages voters to email/contact their senators regarding banking regulation reform. Groovygirl encourages the same thing. Whatever your view, tell your senators. Click here for video.
I found an excellent article at theeconomiccollapseblog.com, “20 reasons why the US economy is dying and simply will not recover”.
As the article states, the big problem is debt. The economic growth in the US for the last 40 years has been fueled by debt not productive output. In order for the US to grow or just maintain the same level of economic activity, it must continue down the black hole of more debt. We will do this until we can not do it any longer and then we will crash.
No debt equals no recovery, period. This is the predetermined result of the systems that have been put in place.
That is an average of 3 per week. If the FDIC can keep the controlled banking implosion controlled. Right now the FDIC has over 500 banks on their watch list, but they don’t publish their watch list.
Make sure your money is protected. At the moment bank closings are not causing disruptions for the average joe. That could change.
Click here for the full article from moneyandmarkets.com.
And banks still insolvent….click here.
Nothing has been fixed, expect more of the same.
Side musing: if you would like to know more about how to protect your money, check out the banking crisis category search to the right for more posts. Five more banks closed last Friday.
The Supreme Court has ruled that corporations have no limit on the amount of money they can “donate” to Washington.
So, K Street will continue to thrive. I am glad someone’s job is safe.
Your voice as a voter just got put on permanent mute.
Expect more bailouts of every kind and no real economic solution or reform from Washington.
This is a sad day.