Wednesday, September 24, 2008

AIG Bailout: We Are Getting Sucked Dry By Spooks Now Barely Disguised As Vampires

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?

Or both?

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.


  1. Another good post. Thanks for staying on this issue. It's too important to do a post and move on to other issues.

    kit, you're right about Sen. Obama. So far, he's the only who has come out with a good plan, and who has displayed the temperament and the intelligence that can bring people together to deal with this economic crisis.

  2. Thanks, Mac. You're right about sticking with this issue. I have another article on hold but it will just have to wait.

    Agreed that Obama has the best plan of the ones offered in terms of bailing out AIG and making loans to other Wall Street entities (maybe) in the future, but the govt isn't supposed to be in bailing out business.

    They don't do it for the poor and middle class, so why should they do it for the rich at everyone elses expense?

  3. I agree that the government shouldn't be in the bailout business. But now they've developed the expectation that there is going to be a bailout. So if there isn't one, that itself could cause a further decline in the markets.

    And what's with the rush? They've already bailed out Fannie Mae, Freddie Mac and AIG, the big one. Are the democrats going to let the Bush Administration and Paulson bamboozle them again with this rush to deal with a "crisis" like they did with the Iraq?

  4. Yeah, they remind me of time share salesmen. High pressure, urgency, gotta act now or the opportunity will pass and you'll be full of regret! They have the global financial world at the edge of their seats, waiting for the ink to hit the paper as though signing off on this bailout will stop this train wreck. They make David Blaine look like an amateur.

  5. Kit, have you heard Bush's warning? He's hinting at a Great Depression, just like you predicted in July. I reread your Sliding Into The Rabbit Hole series and Black Monday to Black Autumn post tonight. How come you knew and they act like found out this week?

    I'm withdrawing most of my money tomorrow until this disaster is over. Thanks for warning us.

  6. *puffs out chest*
    Nah, I'm not always right. I really missed the ball back in May when I guessed that Hillary would defect to the GOP and be his VP. She didn't, but I betcha she entertained the idea.

    Otherwise, they knew. How could the key players who designed the game possibly know less than me?

    I've had a lot of free time and I'm a news junkie whose been following the trends for years, and I think my age and background in working with devious human behavior has been a major plus.

  7. Kit, you're scaring me even worse that those white people on my TV are doing.


    Seriously, what you say makes sense about AIG being some old skool spy vs. spy shit. Those Rothschild bankers made money on both sides of the fence back then.

    And they still do today.

    McCain thinks he's slick. Watch, if they pass this, or when they do, he's gonna take credit for itas if it wasnt gonna happen until he showed up.

  8. Yeah, I can picture him trying to wiggle some credit out anything that can pass for a solution.

  9. Even though it'll hurt the dollar and contribute to inflation, it will cause a positive rally on Wall Street and money will be made.

    It's just that every time they give these bailouts, the subsequent rally on Wall Street is shorter and the decline after the rally hits much harder with a bank or two failing in the end lol

    So those gold and silver bullion coins are screaming BUY ME NOW while the Central Banks manipulate the market and keep the commodities and precious metals suppressed. And when hyperinflation hits, we'll be left holding on to those green worthless pieces of paper, and the "conspiracy theorists" will be laughing like shit.

  10. damn,

    i learned something new today. i am going to have to re-up my research. you are right though this is one hell of a transfer of resources, and the rich get it twice. wealth inequality and tax policies fattened their wallets, then when the policies fail their risk is removed because this is a market economy and we are all at risk.

    smart gamesmanship on their part!!!

    chauncey d

  11. The worst part isn't even the bailout, it's the fact that in the plan, Henry Paulson (Treasury Secretary) would be granted immunity from any consequences associated with it:

    "The most egregious part of the proposed bailout is that it allows Paulson to dole out the funds and deal with the toxic waste without any judicial oversight and with full immunity from any criminal prosecution. This means he can pay par with your hard-earned money, and then when it becomes clear that the cess-pool-paper is only worth a small fraction of par, he can pawn it off to his cronies at bargain basement prices, thus distributing any profits to the elitists as they see fit, and the American people can go spit in the wind." (International Forecaster)

    Sept. 21 (Bloomberg) -- The Bush administration sought unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies in what would be an unprecedented government intrusion into the markets.

    Through his plan, Treasury Secretary Henry Paulson aims to avert a credit freeze that would bring the financial system and the world's largest economy to a standstill. The bill would prevent courts from reviewing actions taken under its authority.

    ``He's asking for a huge amount of power,'' said Nouriel Roubini, an economist at New York University. ``He's saying, `Trust me, I'm going to do it right if you give me absolute control.' This is not a monarchy.'' (Bloomberg)

  12. here's an email I got from my friend today. all it said was this:

    For years now, they’ve told us that we can’t afford—that the government providing healthcare to all people is just unimaginable; it can’t be done. We don’t have the money to rebuild our infrastructure. We don’t have the money to wipe out poverty. We can’t do it. But all of a sudden, yeah, we do have $700 billion for a bailout of Wall Street. —Senator Bernie Sanders (D-Vermont)

  13. This is some scary stuff and we have no idea what's really going on. Are we really meant to? I mean historically every superpower falls. I think it's our time. Since Black people are at the bottom already we won't have that far to fall. The white people are gonna totally lose it though. Too bad. Welcome to the real world without white privilege.

  14. Chauncey, thanks. Except for those in the top 1 to 10% of those with wealth and power, they rest of the pigs at the trough may have outsmarted themselves at everyone's expense.

    Jay Midnite, Agreed, Paulson has too much power. Makes me think he's pimping the tax payers. Regarding our devalued paper dollars, I wonder if it will get as bad as it did in Germany during the Great Depression, when they used theirs to keep the fire going in the fireplace for warmth.

    Emeritus, Thanks for sharing those words from Rep. Sanders. Burns me up more than I can say that they've lied forever that poverty can't be wiped out and that's not enough money for social programs and education, and suddenly it's available - for filthy rich.

    Faith, I don't know... we may not have as far to fall, but becoming the underclass in a chaotic Third World nation would be a nightmare that I can barely imagine. I pray we don't come to that.


  15. "In the biggest bank failure in U.S. history, the Federal Deposit Insurance Co. seized Washington Mutual's assets Thursday. The FDIC then quickly sold most of WaMu (that's assets and liabilities) to JPMorgan." (Yahoo News)

    LMAO JPMorgan really is consolidating alotta financial power arent they


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