"2011: The year we ran out of money ... (MAD Magazine, Dec 2011) ... "
Retrieved by Pat Darnell | Dec 23, 2011 | Bryan TX
Stupefying. If you personally are on the brink of financial collapse, the AIG bailout will not be your model for recovery. The big mystery is that there is no mystery at all. Greedy people made up imaginary numbers and wagered our money on those numbers.
It was a mad gorging feast by a bunch of fecund sharks in our sea of National securities. They almost didn't pay the military last year! For the love of God, all His patron Saints, Mother Mary, step-dad Joseph and Jesus Himself ... did no one see it coming? I know I didn't. Is it really all that complicated?
I look at financial groups organized as stove pipes. You start at the bottom and work your way upward to the cloistered chariman, or actuary, or dego-in-charge. (pribek) ... At the top is the magical corporation papers that "spreads out" all the risk, and claims the "chairman" has nothing to do with it. In other words at the top of the stove-pipe is a system of smoke ... smoke and mirrors.
Just take two minutes and study Ben Bernanke ... is this guy anything more than a putz in facial hair? I suppose he has the floor when he regurgitates and spews financial jargon; otherwise he is a puppet.
March 16, 2011 the COP, Congressional Oversight Panel released its final report on TARP, the Troubled Asset Relief Plan. EXCERPT:
" ... WASHINGTON, D.C. - The Congressional Oversight Panel, which was established by Congress in late 2008 to oversee the $700 billion Troubled Asset Relief Program (TARP), today released its 30th and final oversight report. The report describes the financial crisis, summarizes and updates the Panel's prior oversight reports, and evaluates federal financial stabilization initiatives. (March 16, 2011. COP. read some of it: HERE)" ... The Congressional Oversight Panel was created to oversee the expenditure of the Troubled Asset Relief Program (TARP) funds authorized by Congress in the Emergency Economic Stabilization Act of 2008. The Panel members are former Senator Ted Kaufman; J. Mark McWatters; Richard H. Neiman, Superintendent of Banks for the State of New York; Damon Silvers, Policy Director and Special Counsel for the AFL-CIO; and Kenneth Troske, William B. Sturgill Professor of Economics at the University of Kentucky. (ibid) ... "
The AIG Bailout Scandal | The Nation:
EXCERPT | " ... These financial dealings are monstrously complicated, but this account focuses on something mere mortals can understand—moral confusion in high places, and the failure of governing institutions to fulfill their obligations to the public.
'via Blog this'
" ... The report concludes that the Federal Reserve Board’s intimate relations with the leading powers of Wall Street—the same banks that benefited most from the government’s massive bailout—influenced its strategic decisions on AIG. The panel accuses the Fed and the Treasury Department of brushing aside alternative approaches that would have saved tens of billions in public funds by making these same banks “share the pain.”" ... Bailing out AIG effectively meant rescuing Goldman Sachs, Morgan Stanley, Bank of America and Merrill Lynch (as well as a dozens of European banks) from huge losses. Those financial institutions played the derivatives game with AIG, the esoteric practice of placing financial bets on future events.
[ ... ] That was $700 b-b-b-b-b- billion... folks!
" ... By protecting very large banks from insolvency and collapse, the TARP also created moral hazard: Very large financial institutions may decide to take inflated risks because they expect that, if their gamble fails, taxpayers will bear the loss. (ibid.) ... "
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More on this later after MooPig has had a chance to read thoroughly it's master's articles on "The 20 Dumbest People Events and Things 2011, The year we ran out of money ..." MAD's latest issue. (MooPig. Dec 21, 2011. HERE)