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Destroyer of Ignorance
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Since when does our government have the authority to bail-out privately owned businesses and use tax payers money to do it? If/when these companies start actually making money, will the US government be mailing US tax payers their share? "Too big to fail" is a term that cannot exist in a free market economy!

I wish the revolution would just start already.
 

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I hear you. Funny how they bail out the corporations but not the people.

How about: When lenders leverage too much money, broker bad loans, and too stupid to stay in business, then the American individual KEEPS his house and screw the BANK!!! :eek: :eek: :eek:
 

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high on truck stop coffee
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Not free

If you look into details of the AIG loan(not a bailout)they have to pay it all back at 11%,so it appears the U.S. Treasury will be quite a bit richer after all this is over,with no cost to the taxpayer.Not sure about the others tho...:(
 

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It has happened many times. I have been in war. I have killed. I have starved and lived day to day. Only juvenile fool wishes for the collapse of society.
Goddamm are you backwards on everything? Why is it so difficult to see how the Fed has duped the American public? It is our backed by nothing currency based on "confidence" that is leading to the collapse of our society.

I, and danpauselius I'm sure, would like to restore society to normalcy, a currency that is worth something, to take power out of the hands of those wielding it for their own benefits, and destroying our nation in the process. This means putting the power to print currency back into the hands of Congress (so we don't pay interest on every note printed), and reign our corporations back in by repealing bad laws such as NAFTA, CAFTA, GATT etc.

But that's all "conspiracy theory" nonsense to you isn't it?
 

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Premium Member
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Here is the good one, 85 million dollars x 11% = 9.35 million dollars in interest.

9.35 million dollars that goes into the hands of the government, for loaning YOUR money to a private business. :eek:

Have a look here for some really cool charts about stacking up the dollar and the amount it takes to create some rather large piles of money.
http://www.crunchweb.net/87billion/
 

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not a nut
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Here is the good one, 85 million dollars x 11% = 9.35 million dollars in interest.

9.35 million dollars that goes into the hands of the government, for loaning YOUR money to a private business. :eek:

Have a look here for some really cool charts about stacking up the dollar and the amount it takes to create some rather large piles of money.
http://www.crunchweb.net/87billion/
Unless they blow the 85 million, then go bankrupt. :headshake:
 

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Premium Member
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Its a secured loan for 111 million, they can blow the 85 million, but then they loose the assets that are currently frozen by the secured loan. It would be a win lose in either direction. Sad thing is that the public is the one with the lose situation. Either way the GOV gets their "interest", the company gets their money, and we get nothing. Standard operating procedures in America. :)
 

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Watchin tha world go by
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if Bussiness aint happy --- the contributions stop--- we cant have that now can we

what would inlaws do fer work if thet couldnt lobby?

if anyone had any thoughts that both parties arent owned --- this should pretty much end that fairy tale
 

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Official press release:
http://federalreserve.gov/newsevents/press/other/20080916a.htm

The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under section 13(3) of the Federal Reserve Act. The secured loan has terms and conditions designed to protect the interests of the U.S. government and taxpayers.

The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance.

The purpose of this liquidity facility is to assist AIG in meeting its obligations as they come due. This loan will facilitate a process under which AIG will sell certain of its businesses in an orderly manner, with the least possible disruption to the overall economy.

The AIG facility has a 24-month term. Interest will accrue on the outstanding balance at a rate of three-month Libor plus 850 basis points. AIG will be permitted to draw up to $85 billion under the facility.

The interests of taxpayers are protected by key terms of the loan. The loan is collateralized by all the assets of AIG, and of its primary non-regulated subsidiaries. These assets include the stock of substantially all of the regulated subsidiaries. The loan is expected to be repaid from the proceeds of the sale of the firm’s assets. The U.S. government will receive a 79.9 percent equity interest in AIG and has the right to veto the payment of dividends to common and preferred shareholders.
2008 Other Announcements[/qoute]


The real problem I have is that the expected repayment of the loan is to come from the sale of their assets. How can you sell the very assets that control the terms of the loan? That is selling your collateral to pay your principal. Its like buying a Ferrari with credit and selling it to pay for the car itself. You cannot do it because the car itself is the collateral and the title has a lien preventing sale. Unless the GOV steps in and starts actively selling the assets of AIG (Which they (gov) lent money too (AIG), not bought out the company) our money has been given away, with a slim chance of what? Turning a profit? keeping jobs? they managed the company into the crapper when they had a hell of a lot more than 85 mil, think this will be better?
 

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Be ready,1 if by land,2 if by sea,3 if by executive decree. Keep your knife sharp and your powder dry!

Do not be so sad ,we have a front row seat to the premier of the last days of the American Republic.
 

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Semper non compos mentis
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Sadly since 1950

Since when does our government have the authority to bail-out privately owned businesses and use tax payers money to do it? If/when these companies start actually making money, will the US government be mailing US tax payers their share? "Too big to fail" is a term that cannot exist in a free market economy!

I wish the revolution would just start already.
Unfortunately, danpauselius, since the Federal Deposit Insurance Act of 1950, which offered a controversial 3rd option to the logical first two: 1) Closure and liquidaton of assets, or 2) Purchase and assumption of liabilities of the insolvent agency.

It seems very preferential to massive finance organisations and their investors, who have little incentive to act responsibly.

What can be done? Change the legislation somehow I guess. :mad:

http://en.wikipedia.org/wiki/Too_Big_to_Fail_policy
 
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