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  • A Founding Father's Response to Our Current Financial Mess [View article]
    It gives me great hope to see arguments of wisdom. Thank Goodness some still remember the spirit and endeavor of "The Age Of Reason".

    Debate Is The Distillation Of Reality.
    Jan 28, 2010. 02:05 PM | 3 Likes Like |Link to Comment
  • Proposal for Fed to Become the Next AIG [View article]
    I would like to know if the Fed has purchased any "Interest Rate Derivatives" used to hedge against rises in interest rate.

    If they have, then will they really go against their "Holdings" and raise interest rates when they should?

    The More Stuff "Put Behind The Curtain" The More Potential Conflict Of Interest.
    Aug 21, 2009. 03:33 PM | 14 Likes Like |Link to Comment
  • Wall Street Set to Cash in Again on AIG [View article]
    The Lunacy Continues !!!

    The One With The Deepest Pockets And The Least Negotiating Skills Gets Charged The Most.

    Helps To Have The Use Of "Other Peoples Money" To Pay The Bills.
    Aug 6, 2009. 09:40 PM | 1 Like Like |Link to Comment
  • AIG CDS: The Unwinding Begins [View article]
    Complexity Favors The Sinister.

    I would hope that some investigations would begin in earnest; way over due.

    We need More "Fix" and less "Hand Out" for the system.

    The Circus Continues - Down With Clowns !!!
    Apr 7, 2009. 02:48 PM | 2 Likes Like |Link to Comment
  • AIG Watch: The Taxpayer Is Being Fleeced Twice [View article]
    I wish not to punish everyone - only those deserving.

    Blanket Taxing Is Ineffective And Those With Enough Savvy Can Hide The Money In Plain Sight with all the "Special Case" loopholes in the tax code.

    Mandated Morality Never Works.

    On Mar 17 12:13 PM Allmandb wrote:

    > Congress should pass a special law creating a special 95% tax on
    > bonus income from executives who receive bonuses from companies who
    > have taken billions in Tax payer money for a bailout. That way let
    > the execs get their bonuses the fed will take it back in the form
    > of a new “executive bailout income tax”
    Mar 17, 2009. 05:49 PM | 1 Like Like |Link to Comment
  • AIG Watch: The Taxpayer Is Being Fleeced Twice [View article]
    On Mar 17 09:32 AM D_Virginia wrote:

    > The below is a very important point that I don't think many people
    > understand.
    > If you just "let them fail", you and your principles may be happy,
    > but guess what, all the greedy execs still make out like bandits,
    > your tax dollars still get wasted on this failed company, AND now
    > you open up a whole new domino effect of negative economic consequences.
    > Everyone needs to keep the big picture in mind.

    The "Big Picture" is that they have already failed. How to handle it is the debate.

    I fear that we are wasting our money down the money hole on an irreparable failure of "Fictitious Finance and Funny Money". All Fiat Money systems end the same. This one got an amazing amount of magnitude due to the Financial Engineering in the Off Accounting Book Unregulated Shadow Banking System.

    When the "At All Costs" options are found to be failure, we will have no more resource to support the collateral damage to the people.

    This Will Not End Well I Fear.
    Mar 17, 2009. 05:44 PM | 2 Likes Like |Link to Comment
  • 8 Reasons the Obama Administration Will Not Solve This Crisis by the End of 2009 [View article]
    It is not the Authors intent to educate you in the nuance of "World Economic Structure". Based upon your comment I surmise that there is a great deal that you do not understand about the "System Of Finance And Government".

    You would do well to research some of the authors points and opposing views. All information except personal experience is filtered through others. Que bono and follow the money must always be considered.

    Debate Is The Distillation Of Reality.

    Reality Will Be Reality Whether Believed In Or Not.

    Fantastic Job J. S. Kim.

    It is much easier to navigate with truth as opposed to fantasy.

    Safety Is A Function Of Awareness.

    On Mar 17 12:58 PM Hotlanta wrote:

    > Addressing your points:
    > 1. The initial bailout could have been handled better, but it was
    > necessary to stop the whole economy from immediate collapse. Not
    > Obama's fault, and certainly not a reason his plans will fail.<br/>
    > 2. What's unsound about the monetary system, how did it cause this
    > collapse, and what should Obama do about it to fix the problem. Details
    > over generalizations would be a lot more interesting to read.
    > 3. Why is Keynesian economics so wrong if it's being taught by every
    > top university in the world, and what would you, obviously so much
    > wiser than all those universities, propose should be done in it's
    > place? Again, less generalization, and more detail.
    > 4. Obama's cabinet appointments appear to me to be highly experienced
    > people, and because of that, they're wrong? Who should he have picked
    > for these posts and why?
    > 5. Who cares about Mexico. Different place, different people, and
    > a totally different situation.
    > 6. So you favor the government legislating the free market economy
    > of salary and bonus structures that are used to attract the best
    > people (something they desperately need!) instead of simply talking
    > about political ramifications? What you apparently fail to understand
    > is that those bonuses are necessary for the continued competitiveness
    > of those businesses. Who's going to work for a business that's not
    > going to pay you what you're worth? That said, Obama apparently understands
    > that, yet also has to deal with the politically unpopular nature
    > of the issue. Lucky for us that he sees that this is something that
    > should be talked about in the media rather than something acted upon
    > with legislation. The question in my mind is why don't you see this?
    > 7. See my response to number 6.
    > 8. See my response to number 1 and number 6.
    > For an article entitled, "8 Reasons the Obama Administration Will
    > Not Solve This Crisis by the End of 2009", most of what you wrote
    > had nothing to do with what Obama is doing or provide any credible
    > reasons why his policies will fail. You wrote in vague generalities,
    > talked about things having nothing to do with what he's doing, and
    > repeated yourself on several of your "reasons".
    > It's real easy to take shots from the peanut gallery, but where is
    > there any constructive criticism here? You don't like the economic
    > model being used, yet have no thoughts on what should be used. You
    > don't like Obama's appointments, but have no thoughts on who he should
    > be listening to. You give lots of rhetoric about an emergency bill
    > that Obama only voted for, but had no control over, you use Mexico
    > as a reason why Obama will fail (how intellectually lame is that!),
    > and you make a big deal out of executive bonuses as you correctly
    > point out what a minuscule part of the spending bill they amounted
    > to.
    > I realize you have your fans here, but nothing you said here supported
    > your initial hypothesis. What you actually did here was show us the
    > one thing that Obama cannot control that might slow our recovery
    > down, and that's belly aching from the media. Negativity is NOT what
    > we need right now. If you can't provide constructive criticism, then
    > perhaps you should not say anything at all.
    Mar 17, 2009. 05:30 PM | 8 Likes Like |Link to Comment
  • Why We Need 'Chapter TARP' Bankruptcy [View article]
    I wouldn't mind for Steven Hansen to be "Financial Tsar" for a term of four years (and then the position would be dissolved). The man actually considers the greater scope of things and not just the "Financial Markets". Market confidence would return and the "Ner-Do-Wells" would quake in their boots.

    Real Rational With Regard.

    Thanks For Thinking.
    Mar 17, 2009. 03:21 PM | Likes Like |Link to Comment
  • A Positive Step for the CDS Market [View article]
    Outlaw the "Financial Engineering" in that the risk must stay with the originator or "purchaser", with no "Securitization" of Assets outside of the SEC Regulation. (No Skimming Of Profits By The Shuffling Of Paperwork In Endless Triangles)

    (Not That the SEC is all that good at Enforcing Regulation, but at least there is someone that is "Responsible".)

    Lets hope that the "Clearing House" works. The Failure Would/Will Be Dire.
    Mar 10, 2009. 02:22 PM | Likes Like |Link to Comment
  • Prison Terms Might Be the Future for Some Bank Executives [View article]
    When the law suits begin in earnest, the precarious instability of the system will topple and the cleansing that has been forestalled will begin.

    The crimes will be chased and the burning of the "underbrush" will begin. Unfortunately these fires will rage all the way to K-street in DC and hopefully they do not result in more containment of the people. I pray that the "Witch Hunt" does not consume those that are not "Witches" when it arrives.

    Remember the Constitution and the spirit in which it was created when this happens. I will be surprised if this does not transpire judging by the information I have reviewed to date; I just hope the magnitude does not strain the bonds to breaking of the union.

    Mar 6, 2009. 02:17 PM | Likes Like |Link to Comment
  • CDS and the Looting of AIG [View article]
    Sorry that the liks did not come through the first time. Here they are.

    Shadow Banking System: Death from Nowhere

    In Support of Transparency: Reveal Securitization Certificateholders

    Series: BORROW, Total Borrowings of Depository Institutions from the Federal Reserve
    Mar 5, 2009. 12:02 PM | Likes Like |Link to Comment
  • CDS and the Looting of AIG [View article]
    This "Financial Enginnering" is the reason there is no confidence in the market at this time. The status is all too vague to make educated guesses. No one has confidence in "Solvency" because of the "Possible Losses" (which are of enormous proportion) that may come. Unless this issue is resolved "Time To Maturity" or "Bouncing Off The Bottom" are the only remedies.

    Some other articles that are informative:

    Shadow Banking System: Death from Nowhere

    In Support of Transparency: Reveal Securitization Certificateholders
    (Read The Comments)

    The Result of No Confidence from this ROOT CAUSE can be seen in this graph from the Beloved Lender Of Last Resort.

    Series: BORROW, Total Borrowings of Depository Institutions from the Federal Reserve

    Information Is King.
    Mar 5, 2009. 11:59 AM | Likes Like |Link to Comment
  • 'Huge Gap in Regulatory System' or Fed's Conscious Decision? [View article]
    The Government Does Nothing Well. Extol the virtues of another "Funny Money" scam like Fractional Reserve Banking until the breaking point is reached.

    Everyone Loves The Party Until The Hangover Begins.

    No one likes or listens to the prophets when they warn of catastrophe.

    I wish more people would have debated Ron Paul rather than dismissed him. Debate Is The Distillation Of Reality.
    Mar 4, 2009. 02:53 PM | 1 Like Like |Link to Comment
  • Let AIG Go Bankrupt, Not America [View article]
    Great Comment !!!

    I have no issue with timely unwinding.

    I have issue with my money and the generations to come paying for it.

    I guess it is easier to keep pretending and hope it turns out OK rather than investigation and punishment.

    If investigations ever manifest I would bet that K-Street lobbyists and most representatives will be implicated.

    Time Will Tell.

    On Mar 03 11:49 PM Aristophanes wrote:

    > Bankruptcy courts cannot help the AIG mess. The moment a Chapter
    > 11 comes from AIG is the moment about 50% of banks in the West go
    > into a severe liquidity and insolvency problem due to the counterparty
    > risk. The CDS contractual obligations held by AIG are that big. If
    > the federal government forces contractual abrogation the scope of
    > the failure will be staggering. Almost all Western lending will stop.
    > There will be nowhere near enough solvent banks with enough capital
    > to lend. The courts and the FDIC would be overwhelmed with the problems.
    > Worse, if AIG fails in this market neither the insurance authority
    > nor the the company in its current form can handle the liabilities
    > of a mass withdrawal of insurance policies (redemptions). There is
    > simply not enough cash on the balance sheet as it has been sucked
    > out to pay CDS's prior to September 2008, leading to the Federal
    > intervention. That complicates the matter very much because policy
    > holders have very high claim authority, and that varies by jurisdiction.
    > Where I live, they are #1 on the list. There is a massive international
    > scope to this as well. How do you deal with that?
    > You pay off the policy holders, then waves of banks fail as they
    > lose their bonds and CDS positions, overwhelming the FDIC and therefore
    > depositors. This spooks people (as with the UK's Northern Rock) and
    > there is a bank run and more banks fails until the government has
    > to print money to guarantee deposits, refinancing the FDIC the nasty
    > way. Worse, banks will start calling in loans, even to customers
    > with good credit, in the world's largest margin call. Imagine the
    > foreclosure problem x10, this time aimed at small and medium-sized
    > businesses—every company too small and not well enough connected
    > to float a junk bond.
    > That's the AIG scenario. That cannot be allowed to happen. I'd rather
    > walk away from an Ice Age than be hit by a meteor. As much as I like
    > Jim Roger's plain language assessments, he's too simple in his analysis.
    > A single judge in a Chapter 11 bankruptcy court in Delaware cannot
    > handle all those interlocking obligations in a timely manner. Not
    > with a company as massive as AIG measured in trillions of $$$. A
    > better unwinding process (the S&amp;L model) is needed.
    > The CDS's have a $ amount that can be tagged to them. That's the
    > absolute cost. It's not a "black hole", it's just a very large, but
    > measurable hole. In the long run (a very long run) the offsetting
    > revenues from the insurance side can pay back the cost. The single
    > advantage government has here is time. They can sit on the AIG productive
    > assets for a very, very long time, and finance the current shortfalls
    > with the lowest cost loans on the planet. That's the current scenario.
    > I don't like it, but it is the least bad option.
    > This is the same with Fannie &amp; Freddie. They will have to permanently
    > stay on the books of the Federal Government to earn their way back
    > into the black. One estimate put it at 100+ years for them to do
    > so.
    > Rogers is right about Wall St. and London's City. Good. They need
    > a comeuppance. While Wall St. was a "wasteland" in the 1950's for
    > Jim Rogers, real manufacturing centres like Detroit and Cleveland
    > were thriving, employing millions of people in good-paying, proud
    > jobs. I worry far more about the guy down the street having his loan
    > called in than what happens in the land of financial wizards with
    > their toxic derivative fallout alphabet soup of idiocy.
    > I would also being hearings into professional negligence for many
    > of the people who oversaw those contracts and profited from them,
    > especially at Goldman Sachs and AIG itself. It's time to "crack nuts"
    > and clawback, punish and penalize. Once the screws are turned on
    > a few key players, all sorts of mea culpas and malfeasance will
    > be uncovered. I love finger pointing and whistles being blown. Great
    > theatre. Sometimes, Obama, it's proper and just to "disparage wealth".
    > Let AIG be unwound slowly and methodically identifying and targeting
    > the problem contracts and working them out. It's grim, gritty work,
    > but it has to be done. This will be a long process. So was the S&amp;L
    > unwinding. We got through it, so quit panicking.
    Mar 4, 2009. 02:14 PM | 1 Like Like |Link to Comment
  • The AIG Scandal [View article]
    Anger is usually the first response when deceit is recognized or perceived.

    With no reprisal there is no deterrent for ill behavior.

    I appreciate your call to rational and back to a moderate tone.

    However, if no justice is perceived by the masses then none will continue to willingly participate.

    "Heads On Pikes" is a result of frustration. Financial Retribution For Crimes must be pursued to expose the fallacy of the system. If we never understand what allowed the current environment to manifest, we will never be able to guard against the next event.

    On Mar 02 11:08 PM akapital wrote:

    > ...geez you guys make a good lynch mob...not too bright huh
    > wow, that's how you accumulate all those thumbs up...thumbs up you're...
    Mar 3, 2009. 03:55 PM | 1 Like Like |Link to Comment
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