The Federal Reserve Has Just Taken over AIG

[Larry D. Kage]

I recently started reading The Creature from Jekyll Island.

http://www.bigeye.com/griffin.htm

http://www.bigeye.com/federalreserve_videos.htm

Gotta run...later.

[David P. Valley]

There was no private-sector solution for the AIG ordeal, which left this financial situation in the hands of the government. If AIG was not bailed out, we (the US) would have seen another major drop in stocks. Not a good situation.

The American dollar is so bad today, that I had to pay Europe $1.60 for one lousy Euro when I went to visit last month. It cost me an arm, a leg and some skin off my back to take my vacation with my wife. It makes me think that I should have stayed home, but it's too late now.

We are finally facing the reality, so be prepared for the big slap in the face (which is coming soon). It is already become painfully clear how hard it is for all of America’s financial authorities to steer a nice straight course through a crisis that is piling one systemic threat onto another.

Hang in there....we are just getting started, gentlemen.

[Michael Larson]

Originally Posted by dvalley

There was no private-sector solution for the AIG ordeal, which left this financial situation in the hands of the government. If AIG was not bailed out, we (the US) would have seen another major drop in stocks. Not a good situation.

Why does there need to be a private sector solution?
WHY is another drop in the stock market bad?
Isn't it better to get the market to face reality now?
This latest bailout may only delay the inevitable. The system is broke and with the government as the ultimate bank and guarantor what incentive is there for business to get it right.

The American dollar is so bad today, that I had to pay Europe $1.60 for one lousy Euro when I went to visit last month. It cost me an arm, a leg and some skin off my back to take my vacation with my wife. It makes me think that I should have stayed home, but it's too late now.

Could it be the the weakness of the dollar is because of the enormous debt of this country has and the government guaranteed future entitlements that are woefully underfunded?

We are finally facing the reality, so be prepared for the big slap in the face (which is coming soon). It is already become painfully clear how hard it is for all of America’s financial authorities to steer a nice straight course through a crisis that is piling one systemic threat onto another.

They are the problem. They created this mess by demanding easy credit and mortgages for those who where not credit worthy. And now when the house of cards falls they want all of us to pay for it.

Hang in there....we are just getting started, gentlemen.

I agree, this is likely only the begining. Hold on to your wallet if the government will let you.

[Joseph Burkeson, CMI]

Originally Posted by mlarson

I agree, this is likely only the begining. Hold on to your wallet if the government will let you.

The only good thing that might come out of this is the notion that America might no longer be able to expand its imperialism through military means.

The net-net result of all this government shenanigans in the financial world will soon come home to roost in the form of a dramatic fall off in federal and state tax receipts in the next year or two. The financial services sector, both through corporate and individual receipts, has been a major growth area for government revenues in the last decade. With that wiped out and indeed producing almost incalculable write-offs, federal revenues are about to plummet. (Keep in mind those write-offs can be applied back to previous year's profits for corporations!) Added to this of course will be a deep Main Street recession, which will also cause tax revenues to decline.

We're looking at deficits that will be monstrous by any previous reference point. We won't know the real numbers for another 6-12 months, but it could be push the yearly deficit well over a $1 trillion with two years. Raising taxes will not really be possible because the economy will be in recession.

Further, money will be tight and hoarded by all who possess it and paying down existing debt will be a new national past time.

It's at this point that we will undergo Latin American-style austerity or have hyper-inflation (just print the money) or we just plainly default. Any or all are the End Game for life as we've known it.

The big thing to watch for are news stories in the coming months about how fast tax collections are declining, particularly in NY State and at the Fed levels, and how much higher the yearly deficit projections will grow.

[Michael Larson]

Originally Posted by jburkeson1

The only good thing that might come out of this is the notion that America might no longer be able to expand its imperialism through military means.

The net-net result of all this government shenanigans in the financial world will soon come home to roost in the form of a dramatic fall off in federal and state tax receipts in the next year or two. The financial services sector, both through corporate and individual receipts, has been a major growth area for government revenues in the last decade. With that wiped out and indeed producing almost incalculable write-offs, federal revenues are about to plummet. (Keep in mind those write-offs can be applied back to previous year's profits for corporations!) Added to this of course will be a deep Main Street recession, which will also cause tax revenues to decline.

We're looking at deficits that will be monstrous by any previous reference point. We won't know the real numbers for another 6-12 months, but it could be push the yearly deficit well over a $1 trillion with two years. Raising taxes will not really be possible because the economy will be in recession.

Further, money will be tight and hoarded by all who possess it and paying down existing debt will be a new national past time.

It's at this point that we will undergo Latin American-style austerity or have hyper-inflation (just print the money) or we just plainly default. Any or all are the End Game for life as we've known it.

The big thing to watch for are news stories in the coming months about how fast tax collections are declining, particularly in NY State and at the Fed levels, and how much higher the yearly deficit projections will grow.

Don't worry Joe.

When Obama gets in he plans to raise taxes on high earners and businesses.

Should fill them coffers right back up.


NOT

[Joseph Burkeson, CMI]

Originally Posted by mlarson

Don't worry Joe.

When Obama gets in he plans to raise taxes on high earners and businesses.

Should fill them coffers right back up.


NOT

Hey Mikey,

Too friggin' bad AIG ain't headquartered in Alaska then... we could make jokes about a bridge loan to nowhere.

[klott]

Originally Posted by jburkeson1

The only good thing that might come out of this is the notion that America might no longer be able to expand its imperialism through military means. Typical communist statement, it is no wonder you're an obamite.

The net-net result of all this government shenanigans in the financial world will soon come home to roost in the form of a dramatic fall off in federal and state tax receipts in the next year or two. The financial services sector, both through corporate and individual receipts, has been a major growth area for government revenues in the last decade. With that wiped out and indeed producing almost incalculable write-offs, federal revenues are about to plummet. (Keep in mind those write-offs can be applied back to previous year's profits for corporations!) Added to this of course will be a deep Main Street recession, which will also cause tax revenues to decline.

We're looking at deficits that will be monstrous by any previous reference point. We won't know the real numbers for another 6-12 months, but it could be push the yearly deficit well over a $1 trillion with two years. Raising taxes will not really be possible because the economy will be in recession.

Further, money will be tight and hoarded by all who possess it and paying down existing debt will be a new national past time.

It's at this point that we will undergo Latin American-style austerity or have hyper-inflation (just print the money) or we just plainly default. Any or all are the End Game for life as we've known it.

The big thing to watch for are news stories in the coming months about how fast tax collections are declining, particularly in NY State and at the Fed levels, and how much higher the yearly deficit projections will grow.

You hopped off the bus to soon joe, you would be much happier about 90 miles south of Key West.

[klott]

They are the problem. They created this mess by demanding easy credit and mortgages for those who where not credit worthy. And now when the house of cards falls they want all of us to pay for it. Bingo! This pisses me off so bad, I can't see straight. They come up with ways to screw people out of their money