Posted on 10/08/2008 2:06:22 PM PDT by cdchik123
WASHINGTON: The Federal Reserve has agreed to provide insurance giant American International Group with a loan of up to $37.8 billion, on top of one made to the troubled company last month.
(Excerpt) Read more at iht.com ...
Good grief, let the bastards collapse.
Time for another party!
Wait til Citigroup goes down - then it will all be over (My opinion - no inside information whatsoever).
You know that AIG employees are happy with this news and heading out to $30-per-plate restaurants to celebrate right now.
$30-per-plate
That will be the appetizer cost!!
Do they think money grows on trees in DC? Everybody keeps tacking on more. And it isn’t like we didn’t have a MONSTER deficit to begin with.
very few AIG employees, including myself, are very happy right now.
What makes the Fed and all the central banks think that smart money people are buying any of this nonsense of magic money? Where did this $38 billion come from? From taxpayers, tied to actually PRODUCING something? It’s all vapor.
Is Barney Franks’s Former Gay “Husband” and Fannie Mae Executive Now a Gay Porn Actor? Web investigation indicates he likely is:
Barney Frank’s former so-called “spouse” was a man named Herb Moses.
http://www.washingtonpost.com/wp-srv/politics/special/clinton/stories/frank121898.htm
At the time, Herb Moses was a director for housing initiatives at Fannie Mae.
http://findarticles.com/p/articles/mi_qn4182/is_/ai_n10104224.
Herb Moses helped develop many of Fannie Mae’s affordable housing and home improvement lending programs.
http://www.familysecuritymatters.org/publications/id.1277/pub_detail.asp
Herb Moses was reportedly a mortgage expert who left Fannie Mae in 1998 to start a pottery business.
http://www.businessandmedia.org/articles/2008/20080924145932.aspx
But not before his lover Barney Frank lobbied hard to widen Fannie Mae’s ability to give mortgages to high-risk borrowers.
http://www.businessweek.com/archives/1994/b33985.arc.htm
A “Herbert M. Moses” from Washington D.C. and employed by Fannie Mae gave $1500 to Democrats in the 1990s.
http://www.opensecrets.org/indivs/search.php?name=moses%2C+herb&state=&zip=&employ=&cand=&all=Y&sort=N&capcode=jb97b&submit=Submit
A “Herbert M. Moses” in D.C. is listed at whitepages.com
http://www.whitepages.com/search/FindPerson?extra_listing=mixed&form_mode=opt_b&post_back=1&firstname_begins_with=1&firstname=herbert&name=moses&street=&city_zip=&state_id=DC&localtime=survey.
At this whitepages page, you will find a “background records” link that allows you to buy a detailed report on that name from a list of several links.
http://preview.ussearch.com/preview/ala/newsearch?&searchState=DC&searchFName=herbert&searchLName=moses&adID=6194003754&adsource=9&TID=1&cid=background&searchtab=background
Several of those links will give a teaser list of cities where the named person presumedly has lived or lives.
http://www.ussearch.com/consumer/ala/category.do?cid=5105&did=0&adID=10002101&&searchtab=people&&searchFName=Herbert&searchMName=M&searchLName=Moses&searchCity=Washington&searchState=DC&searchApproxAge=&searchStateJurisdiction=DC&searchGender=&searchZip=20009-1106&vid=cfc&searchAgentNotes=Name_ViewAll&searchPerson=001786905501
Fact check: you can type in the name of someone you know and see that the list of teaser cities is an actual list of the actual cities where the named person has lived.
For “Herbert M. Moses” of D.C., Huntington Beach, CA, is one of 6 cities listed as a current or former residence.
http://www.ussearch.com/consumer/ala/category.do?cid=5105&did=0&adID=10002101&&searchtab=people&&searchFName=Herbert&searchMName=M&searchLName=Moses&searchCity=Washington&searchState=DC&searchApproxAge=&searchStateJurisdiction=DC&searchGender=&searchZip=20009-1106&vid=cfc&searchAgentNotes=Name_ViewAll&searchPerson=001786905501
Newport Beach is 6 miles from Huntington Beach
http://maps.google.com/maps?f=d&saddr=newport+beach,+ca&daddr=Huntington+Beach,+CA&hl=en&geocode=&mra=ls&sll=33.829785,-117.27787&sspn=1.204664,2.460938&ie=UTF8&z=13
A google search of “Herbert Moses”
http://www.google.com/search?hl=en&q=%22Herbert+Moses%22
brings you to a photo and contact page of “Herb Moses” working at Wells Fargo in the mortgage department in Newport Beach
https://www.wfhm.com/wfhm/herbert-moses/index.page
and Herb Moses of Wells Fargo mortgage is also listed at this website
http://workmanrealestategroup.com/lenders.html
A brand new FReeper, Stevie1958, has posted an interesting note at FR claiming that this same pictured Herb Moses has made porn films with his current long-term gay sex partner.
http://www.freerepublic.com/focus/news/2094109/posts?page=85#85
A google search using key terms revealed by this new FReeper, Stevie1958, does lead to webpages with photos of the same pictured man (identified above as Herb Moses) engaged in explicit homosexual sex acts.
http://www.google.com/search?hl=en&q=%22jessie+foxx%22+%22real+couples%22
So, it seems that Barney Frank’s former homosexual “spouse” who was a Fannie Mae executive, is now a third rate loan salesman and gay pron star. It makes Frank’s old housemate, Steve Gobie, who Frank met when he hired him as a male escort, and who ran a gay “escort” service from Frank’s D.C. home, seem pretty tame in comparison (Representative Barney Frank received a formal reprimand from the House for his relationship with a male prostitute - Gobie).
And one more thing: Is Stevie1958 really Stephen L. Gobie?
http://www.freerepublic.com/focus/news/2094109/posts?page=87#87
Why isn’t this coming out of the $700 billion—sorry make that $812 billion with the pork -— bail out???
I’m sure you are sick to your stomach. Hang in there.
$30/plate? That’s nothing... how about dinner at Per Se for $400/person?
It’s an interest bearing loan...good grief people....get your underwear unbunched.
If THEY can’t get a loan..(since the banks are frozen on loans of this size)..the domino’s begin to fall....and we WILL witness a Great Depression. It’s called banking...and the country requires it to keep going.
The Fed is just doing it’s job..flooding he markets with cash....it’s how real depressions are avoided....and you’re not out a stinking dime....so why the hostility?
Oh please! This is simply a securities lending program!
“Under the new program, the Federal Reserve Bank of New York will borrow up to $37.8 billion in investment-grade, fixed income securities from AIG in return for cash collateral. These securities were previously lent by AIG’s insurance company subsidiaries to third parties.”
Most major firms do this all the time and commercial banks are the counterparties. It’s no more risky than me lending shares to Bank of New York.
The Federal Reserve has agreed to provide insurance giant American International Group with a loan of up to $37.8 billion,
Get it?
The Federal Reserve.
Apparently the recipients of this tsunami of cash are all buying T-bills with it, or putting it in their mattresses, or socking it away in a mayonnaise jar in the garage.
Instead of, you know, lending it out.
WOW! I can’t believe this. That’s a lot of spa treatments.
Is this the year we hit a trillion dollar deficit?
Cuts out the middleman entirely, and the businesses are probably less likely to welsh.
And was there ANYTHING in the US economy that backs up the creation of $38 billion that does not correspondingly devalue the dollars already in existence (that have already been devalued by the hundreds of billions the Fed has already created out of thin air?)
That's the problem here - there is NO correlation of the money supply to economic growth - it is a chimera - and the economic system already has too many chimeras to deal with. Creating a trillion dollars from nothing will resolve nothing, as we have seen.
“$30-per-plate”????
You’re dreaming, that’s the fee for filling the salt & pepper shakers, LOL. Or maybe the fork rental.
thanks. sick to my stomach only begins to describe it.
For the purpose of........?
I don't see that in the article.
If THEY can’t get a loan..(since the banks are frozen on loans of this size)..the domino’s begin to fall....and we WILL witness a Great Depression. It’s called banking...and the country requires it to keep going.
They just got a loan. Two weeks ago. Eighty five billions worth.
Not enough, evidently.
The Fed is just doing it’s job..flooding he markets with cash....it’s how real depressions are avoided....and you’re not out a stinking dime....so why the hostility?
The Fed is just running from one fire to the next. That's clear. There is no plan.
My Dad worked for AIG, actually American International Insurance Company of Illinois (IIRC) and they changed to AIG during his tenure.
Seems to me few AIG employees are or ever have been very happy, though I’ve known some IT people at VALIC that were not too down in the dumps.
I keep forgetting what a huge complex they have here in Houston, and how this could all affect my city, which has been largely untouched by all this folderol.
Ha, ha, you beat me to it.
The government is the only entity that can print phony money and not be charged with counterfeiting.
“very few AIG employees, including myself, are very happy right now.”
Assuming you’re not part of the CDS/derivative operation in London that sucked the entire, enormous company into its current morass; and you’re just a somone who works for the very profitable and very well run “normal” insurance operation, I definitely sympathize. OTOH, if you ARE part of the derivative crew, hey, how was the food at the Ritz?
I didn't see that the $38 billion was going to be created. And if it is, it will be extinguished when the loan is repaid.
we had the perfect storm with Ike hitting Houston at the same time that the AIG holding company began to have problems.
Our customer service is operated out of Houston. It has been a real challenge for those of us out in the field, but the folks in Houston really performed heroically.
Simple question (and maybe it’s stupid), why can’t AIG just declare bankruptcy? It’s not like the company will “go under”, it will simply change ownership from the shareholders to the debtholders while it works out its obligations. What is the problem with that?
I’m not well versed in these things, so bear with me folks.
Your tax money is chump change. Inflating the currency (selling T-Bills), that’s where the real money is at. Taxes are just to keep the proles in line.
Sure, the Fed just had, what, $800 billion lying around in the vaults before all this economic chaos broke? Cut me a break. There is only one reason the Fed is doing this - AIG already chewed up most of the $85 billion, but no private party is interested in buying AIG assets. And creating all the funny money in the world isn't going to change that. Paulie baby and Barnacle have done everything but what is needed - demand transparency and Congressional action to force such. Until that happens, financial gridlock will continue.
that could be why they are going for the tortious interference with contract case—figuring it is a quick injection of cash to help them stay afloat
How does selling T-Bills inflate the currency?
That would be AIGFP, and no, I’m not part of that rat hole
I thought it was closer to $900 billion.
AIG already chewed up most of the $85 billion, but no private party is interested in buying AIG assets.
Was the plan to sell the assets today? I thought the idea was to sell them when conditions improved. BTW, they're paying about 11% for that original loan.
What if they can’t pay it back? Interest-bearing loans to people who couldn’t pay it back is what got all this started. It’s no different, perhaps worse, when it’s a giant company that shows no accountability and poor resource management
Then the Fed keeps the collateral.
It’s no different, perhaps worse,
Except for the collateral. LOL!
http://land.netonecom.net/tlp/ref/federal_reserve.shtml
Thanks to Vietvet67
Ack, I get this confused... When the Govt wants to increase the money supply they BUY T-bills which puts more cash in circulation. When the want to shrink it, they SELL T-bills, which causes cash to flow into the Federal coffers.
But money creation is definitely done with T-bills. The printing of currency has nothing to do with it.
Wht is going on here? The treasury must have deep pockets. AIG must be having a big party they keep going back for more. Is anyone monitoring this situation, or is it just a free-for-all orgy of giving away taxpayers money.
The problem that a lot of folks don't understand is that Citigroup was the "seller" on a whole lot of CDS contracts - rivaling Lehman Brothers. When Citi goes - it all goes...
Not true. Tremendous amount of interest and activity.
Not my claim, dirtboy's.
Replace Govt with Fed.
When the want to shrink it, they SELL T-bills, which causes cash to flow into the Federal coffers.
When the Fed sells T-Bills, the Federal government does not get the proceeds.
is a return to the gold standard possible or desirable? I have no idea, and I realize the complexity of the issue, but for my limited understanding I would think that would be somewhat possible, at least in theory
spa treatments for everyone!!!
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