Obama’s Marxist Magic Mess–Big Bad Bonuses–Radical Socialist Sleight of Hand

Posted on March 19, 2009. Filed under: Blogroll, Economics, Employment, Investments, Links, Music, Politics, Quotations, Rants, Raves, Regulations, Taxes, Technology, Video | Tags: , , , , , , |

“Interventionism cannot be considered as an economic system destined to stay. It is a method for the transformation of capitalism into socialism by a series of successive steps.”

“The essence of the interventionist policy is to take from one group to give to another. It is confiscation and distribution.”

“An essential point in the social philosophy of interventionism is the existence of an inexhaustible fund which can be squeezed forever. The whole system of interventionism collapses when this fountain is drained off: The Santa Claus principle liquidates itself.”

 

 

~Ludwig von Mises

Why Are Dems Outraged Over AIG Bonuses When They Benefit Too?

 

ABC Panel Discusses AIG Bonuses

 

Glenn Beck – “Congress Using AIG as a Distraction”

 

Glenn Beck on the AIG Government Scam

 

Jim Rogers: Let AIG Go Bankrupt or USA Finished

 

Jim Rogers : Must Let Banks Fail

 

CNBC’s Rick Santelli on AIG Bonuses “No Big Deal”

 

Penn and Teller Explain Sleight of Hand

 

Both President Obama and the Democrats in the House and Senate are going on and on about all those big bad bonuses totaling $165 million that AIG gave its employess.

 

 

The Democratic Party’s radical socialists wanted the bailouts in the first place so they could nationalize or socialize the banking industry that is in financial crisis or trouble over their investments in mortage backed securities and related derivative securities.

I was and remain opposed to any government intervention into the financial markets by providing capital in the form of a loan to prevent a business going into bankruptcy or liquidation.

The bonuses are a contract between the company, AIG, and its employees.

If there had been no bailout of AIG, AIG would be in bankruptcy or liquidation and the the employees’ contracts would have been set aside.

Once the Federal Government bailedout AIG and the funds were now available for bonsues–the contracts were honored and paid.

The Democrats led by Senator Dodd actually put language in the bill that permitted the payment of bonuses by AIG!

 

Sen. Christopher Dodd says he was responsible for the AGI bonus loophole

 

Carl Cameron Reports Sen. Chris Dodd saved AIG Bonuses

 

liberal Hypocrisy- chris dodd The Liar On AIG Bonuses

 
 

Then the Democrats rushed the bills through Congress without even reading their own words!

Congress should be forced to return their own paychecks for not doing their own jobs.

The arrogant and clueless Democrats wanted the bailouts for their friends and campaign contributors on Wall Street.

Obama Fundraising

 

Obama Ranks Second In Freddie/Fannie Contributions

AIG executives who received the bonuses also gave Senator Dodd campaign contributions totaling over $100,000.

“…Dodd’s state of Connecticut is home to a large division of AIG, which has given the former Democratic presidential candidate more money than to any other lawmaker. Dodd received more than $101,000 in campaign donations from AIG employees in 2008 and $223,000 since 2003, according to OpenSecrets.org. …”

http://www.sfexaminer.com/local/Dodd-silent-on-language-in-stimulus-that-allows-AIG-bonuses_03_18-41404342.html

 

Blame the Democrats for this mess and its continuation.

Bailouts beget more bailouts.

Government intervention leads to more government intervention.

Ban Bailouts.

No amount of hand waving and feigned outrage over $165 million in bonuses will distract the American people from the reality that the Democrats want anywhere from $3 trillion ($3,000,000,000,000) to $4 trillion ($4,000,000,000) for the Federal Government to purchase so-called “troubled-asset” or invest additional money in failing companies.

Forget about the bonuses, focus on who AIG in turn sent to the bailout money to meet AIG’s contracts with them and the amounts:

  • Goldman Sachs:                                         $   12,900,000,000 or $12.9 billion
  • Merril Lynch:                                             $    6,800,000,000 or $6.8 billion
  • Bank of America:                                        $    5,200,000,000 or $5,2 billion
  • Citi Group:                                                $    2,300,000,000 or $2.3 billion
  •  Wachovia                                                $    1,500,000,000 or $ 1.5 billion
  • Société Générale of France            nearly  $   12,000,000,000 or $12 billion
  • Deutsche Bank of Germany            nearly  $   12,000,000,000 or $12 billion
  • Barclays of Britain                                   $     8,500,000,000 or $8.5 billion
  • UBS of Switzerland                                  $     5,000,000,000 or $5 billion

The reason AIG was “too big to fail” is that if it were not bailouted, many other financial institutions in the United States and abroad would also be signficantly impacted.

Why is United States bailingout foreign banks, the American people would like to know?

Did executives of Goldman Sachs, Merril Lynch, Bank of America, Citi Group, Wachovia, and AIG make signigicant campaign contributions to the Democratic Party and its candidates including Senator Dodd and President Obama?

You bet they did!

Who was responsible for the irresponsible mortage loans in the first place?

The Democratic Party including the Congressional Black Causus and the Congressional Progressive Causus!

 

Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis

 

 

Obama & the Congressional Black Caucus are responsible for the financial melt-down

 

The very people that are now complaining  about $166 million in bonuses  paid by AIG to their employees are also the very same people that bear a large share of the blame for causing the financial crisis in real estate mortage loans and related securites!

Keep your eyes on ball and not the the radical socialist sleight of hand.

Forget about the bonuses.

Stop all the bailouts now.

Boycott any company or bank that accepts bailout money. 

Cut Senator and Congress pay in half for financial incompetence.

Better yet fire the greedy, arrogant, stupid bastards!

 LOL

It’s not AIG. It’s the GOV…

A Special Message from Barack Obama’s Teleprompter

 

Incompetent obama’s Teleprompter Crutch- The one Seeks Dialogue With taliban


 

Tarp Song “I Want Some Tarp” by Bill Zucker ” Stimulus and tarp 2 song

 
 

Bailout Figures

Current Bailout Amount: $11,623,630,000,000

“…TARP and the bailouts of Bear Stearns and Citigroup are just the tip of the iceberg. So far, our government committed more than $11.6 TRILLION to funding failed companies (that’s over $60,000 per family in America!), and has spent $3.8 trillion of that in just a few months. (Mouse over the circles below to see the details.)
Yeah, it’s really that bad.

What’s worse? It’s not making a difference. The line for bailouts is growing, and includes the telecom industry, airlines, as well as city and state governments.
We’ve got to do something.

Obama talks a tough game about bailouts, but his own stimulus package and his bank bailout proposal hand BILLIONS more of our dollars to failed companies. …”the gent to DO WHAT’S RIGHT: Stop the bailouts!

http://www.right.org/bailout/main

 

Right.org: Bailout Prize Patrol


 

The American people are oganizing Tea Parties across the United States to protest the One Big Awful Mistake America (OBAMA)!

Second American Revolution–Tea Party Celebrations–Washington Fair–July 4, 2009–An Open Invitation To The American People

American People’s Plan = 6 Month Tax Holiday + FairTax = Real Hope + Real Change!–Millions To March On Washington D.C. Saturday, July 4, 2009!

Tea Parties Take Off In Texas–Spreading Nationwide–Are You Going To Washington Fair? Millions Celebrate The Second American Revolution–Saturday, July 4, 2009

Operation Family Freedom (OFF): Millions Celebrate Washington Fair, Saturday, July 4, 2009–The Second American Revolution  

 

Huge amounts of AIG bailout went to Goldman Sachs

“Goldman Sachs (GS) seems to do everything right, even in the midst of disaster. It turns out AIG (AIG) paid it large sums of money from funds provided by the government.

According to The Wall Street Journal, Goldman got about $6 billion in the last four months of 2008. “The government’s rescue of AIG helped prevent its counterparties from incurring immediate losses on mortgage-backed securities and other assets they had insured through AIG,” the paper writes

Is it right that Goldman got the money? Almost certainly “yes”

The main reason the the government bailed out AIG was that it did not want to see dozens of financial firms that did business with the large insurer take billions of dollars in losses.

That might have put the global financial system in some jeopardy. Goldman had paid AIG to insure and hedge some of its positions. If AIG collapsed, Goldman and many other firms could have been driven to take write-offs and probably seek new capital. …”

http://www.dailyfinance.com/2009/03/07/huge-amounts-of-aig-bailout-went-to-goldman-sachs/

 

A.I.G. Lists Banks It Paid With U.S. Bailout Funds

A.I.G. also named the 20 largest states, starting with California, that stood to lose billions last fall because A.I.G. was holding money they had raised with bond sales.

In total, A.I.G. named nearly 80 companies and municipalities that benefited most from the Fed rescue, though many more that received smaller payments were left out.

The list, long sought by lawmakers, was released a day after the disclosure that A.I.G. was paying out hundreds of millions of dollars in bonuses to executives at the A.I.G. division where the company’s crisis originated. That drew anger from Democratic and Republican lawmakers alike on Sunday and left the Obama administration scrambling to distance itself from A.I.G. …”

http://www.nytimes.com/2009/03/16/business/16rescue.html

 

 

The Kabuki Theater of AIG Outrage

By Michelle Malkin

“…My syndicated column today looks at the award-winning performances of Washington hypocrites outraged by the AIG entitlement beast they nurtured through four massive bailout infusions. For added comic relief, be sure to read through the entire transcript of Robert Gibbs’ press briefing yesterday. (It’s been sanitized. Just add 25 “ums” during every exchange on AIG and you will ensure accuracy.) This morning, AIG president Edward Liddy will take the hot-seat during a congressional hearing so that his enablers can wag their fingers at him while letting themselves off the hook again. One observer expects “outright talk of nationalization.” The House Financial Services subcommittee hearing begins at 10am Eastern.

As that flogging ritual takes place, hark! Tiny Tim Geithner hears the distant sounds of yonder bus wheels thumping.

On with the show… …”

http://michellemalkin.com/2009/03/18/the-kabuki-theater-of-aig-outrage/

 

Chris Dodd confesses: Yes, I slipped in the AIG bonus protection…’cuz Treasury made me

By Michelle Malkin  

Fall, fall on your sword, ye Purveyor of Hypocritical Indignation.

Via CNN, unscrupulous borrower and No. 1 AIG benefactor Chris Dodd admits that yes, yes, he did support AIG bonus protections before he was against them: …”

http://michellemalkin.com/2009/03/18/chris-dodd-confesses-yes-i-slipped-in-the-aig-bonus-protection/

 

How AIG — read: you and I — are bailing out the world

By Michelle Malkin  

“…Bob Owens keeps his eye on the ball and breaks it down:

Barack Obama’s lack of leadership in a down economy has now hit crisis proportions, as his claimed inability to block millions of dollars in bonuses for executives of bailout recipient AIG has caused even his supporters to turn on him.

But while the ire of Congress and the media focus are on the $165 million that AIG paid out in bonuses to their executives, the president is hoping you won’t notice the $100 billion in taxpayer bailout dollars that AIG paid out to other banks, including $58 billion to foreign banks and $36 billion given to French and German banks alone.

The Obama administration is allowing AIG to bail out the rest of the world with your tax dollars.

So by all means, the president is happy to have you railing at “evil” but relatively small potatoes AIG executive bonuses, as it points your outrage away from his own far more costly executive abuses.

And of course, the re-distributor-in-chief hopes you won’t notice where much of the rest of the AIG bailout cash is being spent.

While $58 billion of your tax dollars — or more accurately, your children’s tax dollars — are being used to pay foreign banks, a substantial portion of that money ($43.5 billion) is being used to pay American banks, including Goldman Sachs, Merill Lynch, Bank of America, Citigroup, Wachovia, Morgan Stanley, AIG International, and JP Morgan. …”

http://michellemalkin.com/2009/03/17/how-aig-read-you-and-i-are-bailing-out-the-world/ 

 

Troubled Asset Relief Program

“…TARP” redirects here. For other uses, see Tarp.

The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase assets and equity from financial institutions in order to strengthen its financial sector. It is the largest component of the government’s measures in 2008 to address the subprime mortgage crisis.

TARP allows the United States Department of the Treasury to purchase or insure up to $700 billion of “troubled” assets. “Troubled assets” are defined as “(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress.” [1]

In short, this allows the Treasury to purchase nonliquid, difficult-to-value assets from banks and other financial institutions. The targeted assets can be collateralized debt obligations, which were sold in a booming market until 2007 when they were hit by widespread foreclosures on the underlying loans. TARP is intended to improve the liquidity of these assets by purchasing them using secondary market mechanisms, thus allowing participating institutions to stabilize their balance sheets and avoid further losses.

TARP does not allow banks to recoup losses already incurred on troubled assets, but officials hope that once trading of these assets resumes, their prices will stabilize and ultimately increase in value, resulting in gains to both participating banks and the Treasury itself. The concept of future gains from troubled assets comes from opinion in the financial industry that these assets are oversold, as only a small percentage of all mortgages are in default, while the relative fall in prices represents losses from a much higher default rate.

The Act requires financial institutions selling assets to TARP to issue equity warrants (a type of security that entitles its holder to purchase shares in the company issuing the security for a specific price), or equity or senior debt securities (for non-publicly listed companies) to the Treasury. In the case of warrants, the Treasury will only receive warrants for non-voting shares, or will agree not to vote the stock. This measure is designed to protect taxpayers by giving the Treasury the possibility of profiting through its new ownership stakes in these institutions. Ideally, if the financial institutions benefit from government assistance and recover their former strength, the government will also be able to profit from their recovery.[2]

Another important goal of TARP is to encourage banks to resume lending again at levels seen before the crisis, both to each other and to consumers and businesses. If TARP can stabilize bank capital ratios, it should theoretically allow them to increase lending instead of hoarding cash to cushion against future, unforeseen losses from troubled assets. Increased lending equates to ‘loosening’ of credit, which the government hopes will restore order to the financial markets and improve investor confidence in financial institutions and the markets. As banks gain increased lending confidence, the interbank lending interest rates (the rates at which the banks lend to each other on a short term basis) should decrease, further facilitating lending.[2]

The TARP will operate as a “revolving purchase facility.” The Treasury will have a set spending limit, $250 billion at the start of the program, with which it will purchase the assets and then either sell them or hold the assets and collect the ‘coupons’. The money received from sales and coupons will go back into the pool, facilitating the purchase of more assets. The initial $250 billion can be increased to $350 billion upon the President’s certification to Congress that such an increase is necessary.[3] The remaining $350 billion may be released to the Treasury upon a written report to Congress from the Treasury with details of its plan for the money. Congress then has 15 days to vote to disapprove the increase before the money will be automatically released.[2]. The first $350 billion was released on October 3, 2008, and Congress voted to approve the release of the second $350 billion on January 15, 2009. One way that TARP money is being spend is to support the “Making Homes Affordable” plan that is being implemented as of March 4, 2009, using TARP money by the Department of Treasury. Because “at risk” mortgages are defined as “troubled assets” under TARP, the Treasury has the power to implement the “Making Homes Affordable” plan. Generally, the Plan will provide refinancing for mortgages held by Fannie Mae or Freddie Mac. Privately held mortgages will be eligible for other incentives, including a favorable loan modification for five years.[4]

The authority of the United States Department of the Treasury to establish and manage TARP under a newly created Office of Financial Stability became law October 3, 2008, the result of an initial proposal that ultimately was passed by Congress as H.R. 1424, enacting the Emergency Economic Stabilization Act of 2008 and several other acts.[5][6]

 …”

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

Our Mission at AIG: Repairs, and Repayment

By Edward M. Liddy

“The government rescue of American International Group (AIG) and other financial firms has produced a palpable wave of anger on the part of Americans and a rising public demand for accountability from corporate and government leaders.

The anger is understandable, and I share it. I have been fortunate in more than three decades in business to see firsthand the wealth creation that well-managed American companies bring to their employees and their communities. I have seen the good side of capitalism. But over the past six months, since agreeing to take the reins of AIG and reviewing how it was run in prior years, I have also seen instances of the bad side of capitalism.

Mistakes were made at AIG, and on a scale that few could have imagined possible. The most egregious of those began in 1987, when the company strayed from its core insurance competencies to launch a credit-default-swaps portfolio, which eventually became subject to massive collateral calls that created a liquidity crisis for AIG. Its missteps have exacted a high price, not only for the company and its employees but for the American taxpayer, the federal government’s finances and the global economy. These missteps brought AIG to the brink of collapse and to the government for help. …”

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/17/AR2009031703019.html

 

Tim Geithner interviewed by Rose pt 1 of 6

 

Tim Geithner interviewed by Rose pt 2 of 6

 

Tim Geithner interviewed by Rose pt 3 of 6

 

Tim Geithner interviewed by Rose pt 4 of 6

 

Tim Geithner interviewed by Rose pt 5 of 6

 

Tim Geithner interviewed by Rose pt 6 of 6

 

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Breaking News: Dodd Says loophole that protects AIG Bonuses added per request of the Obama administration. The video is about a fifth of the way down.


http://www.butasforme.com/2009/03/17/obamas-stimulus-bill-explicitly-grants-aig-the-legal-right-to-hand-out-bonuses/

Obama should take full and direct responsibility for this mess.

[…] Obama’s Marxist Magic Mess–Big Bad Bonuses–Radical Socialist Sleight of Hand Possibly related posts: (automatically generated)Inflation and a showU.S. Slowdown May Not Quell Global Inflation […]

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