AIG "Was Going to Bring Down Europe": Lawmaker (Kanjorski)

Reuters via CNBC ^ | March 6, 2009 | Reuters

[ccmay]

The public employees' unions will see to it that there is 100% funding of their gold-plated pensions, even if every other function of government has to shut down to pay for them. We are becoming slaves to the governing class.

-ccm

[BGHater]

Flash back: Kanjorski-$550 Billion Bank Run-2:15markSo does this imply it came from AIG? Is AIG doing the blackmail? Welcome to the NWO.

[roamer_1]

Whether for or against, you might want to have a look at the following exchange. More information is good for all people of various positions on the issues.

See my reply on the originating thread:
FR: "House Divided: GOP's Leadership Crisis Sharper than Steele- ALAN KEYES" #28

[CutePuppy]

Flash back: Kanjorski-$550 Billion Bank Run-2:15markSo does this imply it came from AIG? Is AIG doing the blackmail?

No, it was due to exposure to Lehman. The Fed and Treasury weekend session (September 13-14, 2008) failed to sell or backstop Lehman with liquidity. Lehman went under and declared bankruptcy the next day.

That triggered automatic mark-to-market revaluation to $0 of the assets on the books of money market funds that held Lehman securities. Reserve Primary money market fund immediately accounted for it, which resulted in it "breaking a buck". That triggered a run on money market funds. AIG was taken over a day later, which didn't help the panic, but it was not a primary cause of the run.

See Defusing A $5.5T Run On The Banks - FR, February 15, 2009

[PGalt]

Thanks very much for the ping. Outstanding thread! Thanks to all posters/researchers/linkers/educators. BTTT!

[Texas Songwriter]

No, AIG IS the underwriter of “insurance” (derivitives) of penultimate resort,....the U.S.taxpayer being the final and ultimate underwriter of securitity for European, Australian, Japanese, and some Chinese banks. The U.S taxpayer owns 79.9% of AIG and must be responsible to be sure the derivitive contracts perform. If they do not perform, the entire world economic systems fail, including the USA. Martin Wise, James Sinclaire have been screaming at the top of their lungs about derivitivie exposure for 3 years that I know of. It was as plain as the nose on your face what had to happen. It was only a matter of when. Now, it is happening. AIG will be back again, and again and again to the federal trough. Your personal savings and retirement, if in the market or bonds, is underwriting the European banking failure. They are trying to let the gas out of the balloon slowly, but a day will soon come, (I do not know what that trigger will be), and I believe in the next 13-15 months, when the spring being held down will suddenly unwind and that global economic meltdown will come to the revelation of all in just a few days. It will be a world thrown into darkness and despair. The derivitive nightmare makes this absolutely unavoidable. Prepare the best you can.

[Texas Songwriter]

Isn’t AIG the key to the politicos’ hefty DC pensions?

No. AIG sold today for 36 cents per share. AIG is the conduit whereby the treasury and Federal Reserve funnel money to Europe. Why do you think Bernanke, this week, refused to tell Senators and congressmen where the nearly 2 trillion dollars, some of it TARP money (and therefore taxpayer money insstead of Fed printed money)? Bernanke told them to shove it up their ass. Congressmen and Senators did not have the balls to press the question and find him in contempt of Congress. It was a disgusting display of cowardice we have come to assume in elected officials. Our Republic hangs by a slender thread as we steal the dimes from our parents eyes and transfer a debt which our children will never be able to repay. The liberty tree needs to be refreshed from time to time. This is such a time.

[Sawdring]

Didn't those shoes make it to the mother ship?

[sobieski]

OK, but if we are so interconnected, then why don’t they pony up some of the $?

[Mad Dawgg]

"OK, but if we are so interconnected, then why don’t they pony up some of the $?"

Europe give the U.S. money?

We are Uncle Sugar to them, they will never give us money.

[sobieski]

Exactly! We have them over the barrell of a meltdown and we do nothing.

At least teh Arabs paid for the first Gulf War

[CutePuppy]

Both American and European banks have so far received approximately $50B from AIG obligations. Just as US, European and Asian banks have received money on obligations from European and Asian financial institutions (like Fortis, RBS etc.) backstopped by their respective governments.

Just one latest example:
Lloyds Cedes Control to Government, Insures Assets

Lloyds Banking Group Plc, Britain’s biggest mortgage lender, will cede control to Prime Minister Gordon Brown’s government in return for state guarantees covering 260 billion pounds ($367 billion) of risky assets.

The government’s stake will rise to as much as 75 percent, making Lloyds the fourth U.K. bank to slip into state control since the run on Northern Rock Plc in September 2007.

We are not alone, and should not look only inward, ignoring what happens in the rest of the world. Worldwide, including European and Asian, insurers and financial institutions are in no better shape than ours. Everything is interconnected and intertwined.

When US hedge fund LTCM went bust in 1998, using huge leverage in derivatives and currency trades, it wrecked the economies of several Asian "Tiger" countries, but caused a relatively small and short hiccup in US economy. Of course, we were just starting to enter the Internet and Y2K bubbles...

[PGalt]

BTTT!