On Wall Street and in Washington, there is increasing expectation that U.S. taxpayers will either take the bad assets off the hands of financial institutions so they can raise capital, or put taxpayer capital into the companies, as the Treasury has agreed to do with mortgage giants Fannie Mae and Freddie Mac. As always the Middle Class Taxpayers are the ones who Lose. The Rich Do Get Richer and the Poor Do Get Poorer.
When you have a big loss in the marketplace, there are only three people that can take the loss [1] the bondholders, [2] the shareholders and [3] the government TAXPAYERS
One of the big new players in the swaps game was AIG, the world’s largest insurer and a major seller of credit-default swaps to financial institutions and companies. When the credit markets were booming, many firms bought these instruments from AIG, believing the insurance giant’s strong credit ratings and large balance sheet could provide a shield against bond and loan defaults. AIG believed the risk of default was low on many securities it insured.
The Biggest Bailout in History. $10,000 for every Man Woman & Child on Planet Earth. Thanks Federal Reserve, a private bank chartered by the U.S. government and UN-Constitutional. Do Your Own Research.
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog.