Posts tagged “market oracle”

Yet another AIG junket planned for next week?

Write Congress!

and/or

Call Congress!

Rep. Elijah Cummings (D-MD) said on Hardball today that the AIG executives evidently have another junket planned for next week. I’m not sure if the bad publicity will scare off these robber barons, but I’m not going to wait around to find out. Take a moment and write your congressional representatives and tell them to pull the plug on this outrageous spending or on the AIG bailout all together!

This time, I don’t think I’m going to offer up my letter right out of the gates. But if you are so inclined, I’d love to see what you end up saying about this. Please post your letters in the comments section so we can all bask in the glory of populist outrage!

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AIG Junket?!? As soon as I am done with my piece of cake, I’m coming for your fucking heads!

Aside from McCain’s new $300 billion bailout plan for homeowners, the AIG Junket was the big news of tonight’s debate for me. I missed this story earlier in the day. However, Jim Zarroli over at NPR seems to think it isn’t a big deal:

Obama talked about AIG executives on a junket which was apparently true, but they were from the clean side of the company, the insurance side, not financial products division. That’s an important distinction.Jim Zarroli
NPR

So, Jim would have you believe that the $85 billion bailout of AIG is going to be given only to the “clean side” of the company. Those dirty bastards over in financial services won’t get to see a dime of it? Uh, how about this, Jimbo: Bullshit! That isn’t how it works and you know it. If we had not bailed out the “bad” side, the “good” side would not have had the $443,344 to spend on the junket in the first place.

This is, pure and simple, you and I paying for $3 per minute (!) massages for the assholes that didn’t have the courage to stop their co-workers from running the nation’s largest insurer into the ground.

Not nearly good enough, Congress. Not nearly good enough, AIG. I want my money back!

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Wasn’t the bailout supposed to increase credit liquidity?

After the bailout sailed through the Senate on Friday, it took a bit of wind out of my sails. Thanks for noticing my absence. But after yesterday’s big drop in the Dow and the announcement today that the Fed is going to buy commercial paper, directly funding businesses, I found my voice again (Psst! You really should read that last link!).

As I write this (2:00 PM CST), the Dow is down 332.29, sitting at 9623.21. That is the lowest number in at least 4 years and it follows Bernanke’s announcement that the Fed will likely cut rates, an announcement that typically makes the market surge. Before I drift off on a tangent (ooh, it is such an important tangent!), I just want to hammer home the point that last Friday’s bailout was sold to the American public on the premise that it was “for Main St., not Wall St.” and that it would also increase liquidity in the credit markets. Why, then, is it necessary for the Fed to start buying short term debt from companies? As the New York Times puts it, credit markets have “all but dried up.” And what, exactly, is the Fed going to be buying from companies? Unsecured commercial paper. What is that? You might ask the Market Oracle and discover that it is the very same construct that got us into this mess in the first place! (Psst! You really should read that link, too!)

Is there any possible way this can be construed as a free market move? I think not. This is kleptocratic socialism of the highest (read worst) order. So, to sum up your situation as a American tax payer, you have bailed out the following organizations in the last six months (incomplete list):

  1. Bear Stearns
  2. IndyMac
  3. Fannie Mae
  4. Freddie Mac
  5. AIG
  6. $700 billion “Paulson” Plan (note: also available to foreign banks)
  7. Federal Reserve CPFF (the Commercial Paper Funding Facility)

I defy anyone to explain this as anything but kleptocratic socialism. See my next post for the tangent I promised earlier in this post.

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