Sunday, November 9, 2008
AIG gets the Government Cheese
On Thursday, November 6, 2008, I wrote that Hank " J Edgar" Paulson should be chased out of Washington DC, exiled to Alaska with Governor Palin and have all of his credit cards cut in half. Well, Someone very high up is listening to the King, because Paulson is Toast.
But like the kid that knows Daddy is on the way home with the belt, Hank is going to do a little more damage to the furniture. Hank and his Minnie Me Niel are going to start by increasing the September 16, 2008 85 billion dollar loan to AIG to 150 billion.
You read right. The United States Treasury is already renegotiating a loan that is not even 45 days old by lowering the interest rate from 8.5% to 3% and increasing the term from 24 months to 60 months. This new infusion of cash does not increase the taxpayers ownership shares. Apparently, there is no credit crises for AIG, but there is for the homeowner waiting on a loan modification, or the small business waiting on sales to pick up.
Not to be outdone, Ben "Bankrobber" Bernake of the United States Treasury Department has "lent" out 2 trillion dollars outside of the Troubled Asset Relief Programs under the guise of emergency loans to Bank of America, Citigroup and JP Morgan et al. By declaring these monies emergency loans, the terms remain cloaked in secret. It seems like the CIA has infiltrated our domestic financial agency.
Government cheese is only available for those with a full loaf of bread.
Posted by BlakPac