The conversations we've heard this week is not about "bailing out Wall Street." It's a sales pitch to Congress, designed to get their approval to force the American tax payer to spend $700 billion dollars to keep one corporation - the American Institute Group, also known as AIG - from going under.
The quotes below by Fed Chairman Ben Benanke begin at 2:45
Today, Bernanke testified, "The Federal Reserve took this action because it judged that, in light that the prevailing market conditions and size and composition of AIG's obligations, a disorderly failure of AIG would have severely threatened global financial stability, and consequently, the performance of the US economy...
"The collateral for the loan is the company itself, together with it's subsidiaries. Insurance policy holders and holders of AIG investment products, however, are fully protected...
"In addition, the US Government will equity participation rights, corresponding to a 79.9% equity interest in AIG, and has the right to veto the payment of dividends shared to common and preferred share holders, among other things."
This is why this crisis is not about 'bailing out Wall Street'.
What's not in any video that I could find was what happened moments after the testimony ended. On C-Span, you could see Ben Bernanke walk over to the guy chairing this fuck fest. They shook hands, and the man gave him the thumbs up.
I couldn't imagine why. Bernanke confronted several of angry congressmen and gave so few concrete answers that he reminded me of McCain's VP running mate, Sarah Palin.
AIG is an octopus with tentacles that reach all around the globe. AIG's history dates back to WWII. It was involved in spying in other countries while fronting as an insurance business, which was a tool to win wars. If you haven't already, read about this in my Sunday 9/21/2008 post, The Spooks Who Sit Beside Everyone's Door.
This gives us perspective in why the US Government is in a panic to save AIG now - and to claim 79% ownership of it. If one assumes that AIG is still in the global spook and war-profitering business, you'll understand that they don't want to save it, but have to so no one else will.
The last thing the US Government wants or needs is for the Chinese or Russians offering to buy it, and Americans asking what the fuck? when our leaders say "no thanks, we'd rather our taxpayers foot the bill."
Unlike the other dead and dying Wall Street firms, AIG's failure ain't a whole lot about shitty subprime loans.
I wonder who the biggest investors were, and did they manipulate it so it would fail?
Could it be the gang of mutli-billionaires like Rockefeller and the Bilderberg Group, who have a unique plan for squeezing out money of us for their war plans?
Or international investors like Russia, China, and the even the UK, who may have pulled the plug as covert economic war on America, designed to castrate AIG's spying abilities and thus, restrict our war plans and goals for domination of the world's oil reserves and other resources?
This is what Chairman Bernanke, politicians and the White House is not revealing. Instead they're talking about how they saved Fannie Mae and Freddie Mac so that the housing loan market would not collapse overnight, and why they should spend nearly one trillion dollars to 'save Wall Street', when it's only AIG they're planning to rescue.
They will too, by Friday, is my guess. This is why that puppet John McCain postponed the debate with Obama on Friday and suspended his campaign until after this blows over.
I'm dead certain McCain is secretly expecting the deal to go down tomorrow or the next day, then he won't need to make a stand on it, and risk saying something stupid or that sounds like a promise to the American people.
Instead, he can later posture that "under the circumstances, Bernanke, Congress, and the President did the best they could, and I will blah blah blah (fuck you even more in the ass) if you elect me."
I'd sure like to see Congress get some spine and say hell no to voting on it this week. Then we can all enjoy watching McCain show us a few more of his incompetence cards in an already fucked up deck.
Meanwhile today, Barack gave a banging speech about his efforts for both McCain and himself to come out with a joint statement on the crisis. Obama has a decent plan, too, compared to anything else I've heard.
McCain, the roach he is, scurried away from this light of sanity and then cancelled their debate. Mofo fronted that he needed to keep in tune with the crisis. Sheeit. Ain't like he can do a damn thing about it except make it worse if his hand is in it. It's his buddy and former financial adviser, Phil Gramm, who helped doom the housing market in the first place by passing the loophole bill several years ago that allowed white collar criminal lenders allow folks get over their heads with mortgages they couldn't afford.
You'd also do yourself a favor by reading this brief article at James Kunstler's site, titled "Bailout Games", dated 9/24/08. Here's an excerpt:
Notice that this is essentially a swindle.
Notice that many of the holders of this paper are the same people (and companies) that created it.
Notice that the company headed until recently by Treasury Sec'y Paulson (former CEO of Goldman Sachs), was not only in the forefront of engineering these debt securities, but that an office within Goldman Sachs was shorting the very securities that they were creating and selling to other banks, pension funds, and municipal investment funds?
My prediction is that Wall Street per se won't go under; it will be "restructured" - a fancy word that tells the ordinary American nothing, who will believe that by our saving AIG, Wall Street was saved.
Meanwhile, more of our banks will go under. My greatest worry is that FDIC will go bust. It would be the kiss of death for every aspect of how we do business and include people losing their retirements and pensions. If you're only 35 and have worked at some place for ten years, you might have well over $20K saved toward this. Don't blink; it might go poof.
For the newbies, FDIC is the federal insurance that protects your money up to $100 grand if your bank fails. Not just yours, but the business you work for that signs your paycheck. If their bank loses their money, you ain't getting paid.
Do I think AIG should be saved?
If it were strictly a Wall Street financial institution, I'd say no, let 'em take their licks.
I also have a moral dilemma over saving a covert spook agency that's quite possibly involved in our imperialistic war-mongering. To me, keeping AIG out of bankruptcy feels a lot like saving Halliburton seasoned with CIA and NSA flavors.
I also wonder who came up with the $700 billion dollar price tag... and why the corporation can't simply be turned over damn near free to the US Government since it will be nationalized and the feds will own 79.9% of it.
In other words, it's like a clever sales pitch asking us, We The People, to buy the IRS or the US Army.
Because of all this, I wonder if the price tag is just a scam, and the $700 billion dollars these vampires will suck out of us will be used for maintaining the war theaters in Iraq and Afghanistan, along the upcoming wars with Iran, Pakistan, Syria, Venezuela, Cuba... and perhaps, Russia.
Where is Buffy the Vampire Slayer when you need her?
Addendum, Oct 8, 2008 - Betrayed By The Bailout is a must-read article as a follow up to this post.