Thadeus Thornton III

AIG Bonus Outrage Only Grows Worse

I heard an aspect of the CDS process I can not verify. Perhaps someone can. I heard that when a CDS was configured, a "premium" was added to the actually cash liability of it of from 5 to 15% or more. In other words, there was front end money being made from the get go. If that's the case, then the CDS market had to be grossly inflated, and therefore more funds out there than was covered by any real property or collateral. Where was this money supposed to come from when paid off? If I were AIG, and the CDS was say $1 million, but the face value was $ 1. 15 million, who covered the excess?
Am I missing something here or is this magic math? Can anyone confirm that this is part of the problem?

Why AIG Wasn't Allowed to Fail

So how do I get to pass my default on my home and car loans off on someone else? I mean I can get PMI for my home, but that doesn't allow me to be reckless and stupid. Does anyone know of an insurer (besides AIG) who will give me a policy soon so that I can default and have my stuff for free. . . Oh, and maybe with a cash "bonus" too for being crafty enough to think of this?

AIG's Blackmail Note

Actually, this is all academic. When the Chinese start calling in all the loans and other financial instruments it has with the US, and the US can't pay it back in a timely fashion; the Chinese will just take over all the outstanding assets. Then they will fly over here and confiscate all the ill gotten bonuses, assets, fortunes, our homes and all the property and money of us all.
I have my tongue planted in my cheek on this one folks, but not very firmly.

AIG and Bailouts: Welcome to the Real World

In other words, incentives usually cultivate some form of greed, which results in manipulations, which is how we got into this mess. I would think the "manipulations" would be less devastating if some of the regulations in the banking and investment sector had been in place and policed. But then again, agencies have been known to look the other way whilst opportunities were being exploited anyway.

AIG's Blackmail Note

Well then, give me just 1 of that $165 million is what I saw first reported. If it's not such a big amount, what's another million if they give it to me. After all, at least I didn't help screw up AIG. lol

AIG: Geithner's Outraged? He Should Be Embarrassed

Yet another "outrage" that the American public gets a whiff of. And now Bernanke thinks the "recession" will end in 9 months or so. I don't think the American public will stand idle that long. I expect civil unrest to start this summer in places like Detroit and other areas of massive unemployment and home loss. The "Big Boys" have wrung all they can out of lying, cheating, and misrepresenting financial statements to get high salaries and bonuses.
If GM and the auto makers had to modify their contracts with the UAW not once, but twice ( not even counting all the reduction in pay in the 2007 contract) so far to get a LOAN, why does AIG get off with this? Oh I know, these "contractural obligations of bonuses" were in place BEFORE the money was given to them. What!??? And the UAW contracts weren't? It's just another blatant demonstration that what's good enough for the "indians" doesn't apply to the "cheifs".

AIG Rewards Failure: How Could the Brightest Be So Blind?

This AIG thing is an outrageous scam on the American taxpaying public. People are screaming about LOANING money to GM and other automakers to keep them alive, and here the government gives money away to AIG with no strings and inflated bonuses are given away to "keep the talent". Most of congress and their lobbiest cronies must have money in AIG pension or investment accounts to allow this kind of thing to happen. Life today is not much different than medieval times. We are living in a fiefdom and the "Big Guys" keep taking advantage of the serfs in various ways. The only thing that has changed is the way things are transparently manipulated, at least, until now.

If I were a young person I might start thinking, "Why work, why save, why try and position myself in some form of honest employment when the few , but influential, manipulate things in an economy to their advantage." America, land of opportunists.

". . . man has dominated man to his injury". Ecl. 8:9

The Economy, And Why It's Taking So Long to Fix It

I think these writers are capitalizing on this "frenzied" economic climate we currently have and taking advantage of us. They probably don't have a real job , so they collect information (not their own) and re-post it here on Alpha. Oh! And also put links in to sites they make more money on for still more fear mongering articles, critical of everyone but themselves.

The Economy, And Why It's Taking So Long to Fix It

---> "The Housing Bust. We know now that we’ve been living through a classic bubble in the housing market, where frenzied buyers sensing a rush bid prices far higher than they should have gone. So the market crashed. And now everybody wants to know when home prices will stop falling. " <---

Yes, well, it couldn't have been the Real estate and banking crowd that encouraged this kind of irrational exuberance could it? Granted, I wouldn't have paid $560,000 for a 1400 sq/ft, 1960s ranch home in San Diego. But people DID have to live somewhere. Where were the regulations to rein in this kind of risky loan making and home valuation?

The Economy, And Why It's Taking So Long to Fix It

Yes, what I mostly get out of this IS: It's for tax PAYERS to pay taxes. Tax payers being mostly wage earners of the fiefdom. And it's for financial gurus, investment bankers, and real estate moguls to get free money that the tax payers gave for their hard work. It's always the Big Boys who squeal like pigs about PAYING taxes, but manage to always be more on the receiving end of tax dollars.
Collect huge and obscene salaries and then make sure they all still get bonuses at taxpayers expense. Use TARP money to buy up smaller banks, then when the dust settles, my oh my will they have more to play with!!