a believer

The AIG Scandal

ED K

Don't worry, you won't pay the $803.00 in extra taxes. Instead, next year you'll pay $1,606.00 for last year's $803.00 worth of goods and services.

Part of the reason for this is that the *financial servcies* industry (isn't that starting to sound like an oxymoron?) is by far the largest $$ contributor to BOTH political parties, and they really know how government works.

(We Won't Get Fooled Again!)

AIG Must Not Fail! - Cramer's Stop Trading! (9/15/08)

Cramer:

"Why blame the government?

Because this stuff as so known and so obviously in the cards that you have to wonder whether perhaps the government has some marching orders from the president to do nothing until after every collapse -- nothing that is preventive."

Well Cramer, here is a little Politics 101:

We would all love to receive a crisp $1,000 bill in our mailbox daily, courtesy of everyone else (read: taxpayers). Personally, I think that would be just the cat's meow.

However, in an election year that's like wishing for World Peace. It's just not going to happen, even if it were the right thing to do (and its not), because it would be political suicide for McCain in particular and the Republicans in general, and of course Bush knows this.

The music has stopped, the dance is over, and its time to find a seat.

AIG Must Not Fail! - Cramer's Stop Trading! (9/15/08)

Here is a good article from

www.riskglossary.com/l...

An excerpt:

"Analyzing CDOs is difficult. Not only is there an entire portfolio of credits to analyze, in managed deals, an investor won't know what collateral will be purchased. On top of this is the added complexity of the tranching, which must also be analyzed. Sophisticated portfolio credit risk models should be used. Needless to say, there is much potential for manipulation or abuse by sponsors."

Its no wonder the stock of the 'sponsors' like LEH and WM is going to zero - no investor can even figure out what these companies own, so they've decided it's all toxic waste.

Unfortunately this will hit the debt holders the hardest - people who because of their bad financial decisions, assisted by the mortgage crooks, will be slaves to their debt obligations - the banks - for years to come: a return to American Slavery.

AIG Must Not Fail! - Cramer's Stop Trading! (9/15/08)

Cramer at 10:47 AM EDT on Black Monday (9/15/08)

"... Lots of high-multiple stocks are going down; they'll probably bounce later in the day."

OOPS - Wrong again!

AIG Must Not Fail! - Cramer's Stop Trading! (9/15/08)

Widespread rants of a fool: "AIG is too big to fail" reminds me of the infamous "Even God himself could not sink this ship."

Just never forget that these are HIGHLY LEVERAGED DERIVATIVES and the investors do not know their value, least of all Jim Cramer (therefore, they are worthless toxic waste.) I hate to be the bearer of bad news: LEH going to zero is but a foretaste of things to come.

"Somehow the banks will survive."
from: 'A Prophetic Vision of the 21st Century' by Rick Joyner, 1999

Attention Locusts: The Party Is Moving to Merrill and AIG

Sorry, a typo. The book is:

A Prophetic Vision for the 21st Century.

(I recommend it - a great read by the way)

Attention Locusts: The Party Is Moving to Merrill and AIG

'...once you crack them open and find out they are junk.' Yes, with most of the investing public wronmgly sold on 'buy and hold,' the CROOKS became bold enough to repackage hazardous waste as dark chocolate truffles! Of course most of them probably believed their toxic waste was valuable, at the time. Didn't we all scoff at those quaint ads by Countrywide pushing the no-money-down mortgages to people with bad credit? And now it's all coming back to the big banks.

Remeber the articles several years ago about the $ trillions in highly leveraged derivatives suddenly unwinding? We are seeing a part of it, and no-one knows where it will end. This is BIG, because with these cascading failures, the American public will have lost trust in these big banks. I doubt that even LEH can value most of the toxic waste they were/are still holding, that is probably why Barclays and BAC had to walk away today. Could it be that they lost track of a way to even value it?

"Somehow the banks will survive."
-from: A Prophetic Vision for the 20th Century, by Rick Joyner, 1999.