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Thank You, Vytautas
Posted in Communications, Current Events, News, Personal Freedom, Politics, Surivial, Tyranny
Tagged Big Government, cap and trade, Chief Justice Roberts, Citizens United v. Federal Election Commission, Constitution, Constitution's separation of powers, Democrats, Dianne Feinstein, Dick Durbin, Don't Ask, Don't Tell, Freedom, Harry Reid, High Taxes, Joint Chiefs of Staff, judicial branch, Justice Alito, lesbians, military, Nancy Pelosi, Obama, Obama/Pelosi/Reid power axis, Obamacare, Patrick Leahy, Republican, socialism, socialist nation, socialist tyranny, socialized medicine, sodomites, State of the Union address, Supreme Court Justices, Taxes, Tom Harkin, Totalitarian Government, United States Senate, US Supreme Court, Washington, White House
A key question at the heart of the controversial bailout of AIG is just how much money the government lost. The Federal Reserve and Treasury Department have worked to keep that number secret and to conceal who was on the winning end.
An unredacted document obtained by the Huffington Post list the damage in detail. Goldman Sachs alone, for instance, got $14 billion in government money for assets worth $6 billion at the time — a de facto $8 billion subsidy, courtesy of taxpayers.
The list was produced as part of a congressional investigation led by the House Oversight and Government Reform Committee into the federal bailout of AIG.
The Federal Reserve Bank of New York, then led by now-Treasury Secretary Tim Geithner, purchased a slew of souring assets from the world’s biggest banks for 100 cents on the dollar in November and December 2008. A scathing report by a government watchdog held Geithner responsible for the overpayments.
The New York Fed initially pressured AIG to keep the list hidden from investors, regulators and the public. When it was eventually filed with the Securities and Exchange Commission, the SEC allowed the Fed and AIG to keep the details secret. A heavily-redacted version was made public last March.
The document is part of 250,000 pages of internal documents on the AIG deliberations subpoenaed by the oversight committee. It lists the toxic mortgage bonds that banks insured through AIG.
Those insurance contracts, called credit default swaps, are what the New York Fed ultimately took off AIG’s books, paying the banks 100 cents on the dollar for toxic mortgage bonds — home mortgages that were bundled together and securitized. The banks could never have gotten anywhere near such a generous deal on the open market, so the move served essentially as a direct subsidy to those banks from taxpayers.
Up until now, taxpayers had no way to know exactly what they owned. They knew they owned a certain amount of assets, but none of the details: which bundles of mortgages it purchased from AIG; how the banks were valuing those mortgages; how much collateral they had demanded from AIG on those securities; or which bank bundled those mortgages into securities.
Rep. Darrell Issa of California, the top ranking Republican on the oversight committee, told HuffPost that he was not persuaded by government and Fed arguments that the transactions should be kept secret.
“Just because the government happens to own the bonds, which means–by the way, they don’t have to be sold at all until they are worth what we want them to be worth — that somehow they have to be kept a secret,” Issa said during a break in the today’s AIG oversight hearing, where Treasury Secretary Tim Geithner testified about his role in the bailout as then-head of the New York Fed.
The troubled insurer tried to publicly disclose these details in December 2008 before being thwarted by the Geithner-led New York Fed. A month later Geithner left to head the Treasury Department.
Issa said that the public had a right to see the document. “I mean, think about it: What the government owns it can keep as long as it wants. It would be like saying you can’t appraise federal land. Why? It is one of those things that’s outrageous. We know we paid a hundred percent for them. We know who got the money. This document shows who ultimately were the beneficiaries. And we believe since that they’ve asked to have it locked up until 2018 — and nobody today defended that — that it’s time to release that,” Issa said.
A government audit this month found that as of Sept. 30, 2009, the Treasury Department was expecting a $30 billion loss on its TARP-related AIG investment. The value of the securities could ultimately rise, though.
“The way the AIG bailout was engineered was to specifically benefit Goldman Sachs and its trading partners,” said Janet Tavakoli, a Chicago-based derivatives expert and founder of Tavakoli Structured Finance. “Goldman’s past and present officers used crony capitalism to put their own interests ahead of the public.”
The nation’s fifth-largest bank by assets ultimately got $14 billion through what members of Congress are calling a “backdoor bailout” of the world’s biggest banks.
“The suppression of the details of the [credit default swap] trades protected Goldman Sachs and its trading partners,” said Tavakoli, who’s examined Goldman’s credit default swap arrangements with AIG. “The $182 billion bailout overall kept AIG alive, and its trading partners, including Goldman Sachs, benefited from the funds made available to the securities lending transactions and other subsequent trading transactions.”
At the time the document was prepared, Goldman’s $14 billion in souring derivatives had a market value of just $6 billion. Goldman had more than $8 billion in collateral from AIG to protect it from losses, meaning it was still about $6 billion short.
But more than $2 billion of those collateral payments came from AIG after it was bailed out on Sept. 16 of that year, according to a Nov. 2008 presentation prepared for the New York Fed that was released this week. So that $2 billion was made possible partly due to taxpayer assistance.
Combined with the $6 billion deficit it faced in the face value of those securities, Goldman Sachs ultimately received about $8 billion from taxpayers via AIG. Goldman posted a $1.3 billion profit for 2008.
Despite the Fed’s protestations that full disclosure would harm AIG — and thus the taxpayer — the financial blog Naked Capitalism has largely pieced together many of the key details using public sources — and traders who were interested in buying the bonds from the government would easily have access to the rest.
HuffPost published the unredacted document at 2:47 p.m. ET. One minute earlier AIG shares were trading at about $24.59. It closed the day at $24.91.
The document also includes detailed information about the transactions involved. The document, a Schedule A Shortfall Agreement, can be viewed here.
http://www.huffingtonpost.com/2010/01/27/revealed-see-who-was-paid_n_438933.html
A look at some of Obama’s claims and how they compare with the facts:
OBAMA: “Starting in 2011, we are prepared to freeze government spending for three years. Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will. Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don’t.”
THE FACTS: The anticipated savings from this proposal would amount to less than 1 percent of the deficit — and that’s if the president can persuade Congress to go along.
Obama is a convert to the cause of broad spending freezes. In the presidential campaign, he criticized Republican opponent John McCain for suggesting one. “The problem with a spending freeze is you’re using a hatchet where you need a scalpel,” he said a month before the election. Now, Obama wants domestic spending held steady in most areas where the government can control year-to-year costs. The proposal is similar to McCain’s.
OBAMA: “I’ve called for a bipartisan fiscal commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. This can’t be one of those Washington gimmicks that lets us pretend we solved a problem. The commission will have to provide a specific set of solutions by a certain deadline. Yesterday, the Senate blocked a bill that would have created this commission. So I will issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans.”
THE FACTS: Any commission that Obama creates would be a weak substitute for what he really wanted — a commission created by Congress that could force lawmakers to consider unpopular remedies to reduce the debt, including curbing politically sensitive entitlements like Social Security and Medicare. That idea crashed in the Senate this week, defeated by equal numbers of Democrats and Republicans. Any commission set up by Obama alone would lack authority to force its recommendations before Congress, and would stand almost no chance of success.
OBAMA: Discussing his health care initiative, he said, “Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan.”
THE FACTS: The Democratic legislation now hanging in limbo on Capitol Hill aims to keep people with employer-sponsored coverage — the majority of Americans under age 65 — in the plans they already have. But Obama can’t guarantee people won’t see higher rates or fewer benefits in their existing plans. Because of elements such as new taxes on insurance companies, insurers could change what they offer or how much it costs. Moreover, Democrats have proposed a series of changes to the Medicare program for people 65 and older that would certainly pinch benefits enjoyed by some seniors. The Congressional Budget Office has predicted cuts for those enrolled in private Medicare Advantage plans.
OBAMA: The president issued a populist broadside against lobbyists, saying they have “outsized influence” over the government. He said his administration has “excluded lobbyists from policymaking jobs.” He also said it’s time to “require lobbyists to disclose each contact they make on behalf of a client with my administration or Congress” and “to put strict limits on the contributions that lobbyists give to candidates for federal office.”
THE FACTS: Obama has limited the hiring of lobbyists for administration jobs, but the ban isn’t absolute; seven waivers from the ban have been granted to White House officials alone. Getting lobbyists to report every contact they make with the federal government would be difficult at best; Congress would have to change the law, and that’s unlikely to happen. And lobbyists already are subject to strict limits on political giving. Just like every other American, they’re limited to giving $2,400 per election to federal candidates, with an overall ceiling of $115,500 every two years.
OBAMA: “Because of the steps we took, there are about 2 million Americans working right now who would otherwise be unemployed. … And we are on track to add another one and a half million jobs to this total by the end of the year.”
THE FACTS: The success of the Obama-pushed economic stimulus that Congress approved early last year has been an ongoing point of contention. In December, the administration reported that recipients of direct assistance from the government created or saved about 650,000 jobs. The number was based on self-reporting by recipients and some of the calculations were shown to be in error.
The Congressional Budget Office has been much more guarded than Obama in characterizing the success of the stimulus plan. In November, it reported that the stimulus increased the number of people employed by between 600,000 and 1.6 million “compared with what those values would have been otherwise.” It said the ranges “reflect the uncertainty of such estimates.” And it added, “It is impossible to determine how many of the reported jobs would have existed in the absence of the stimulus package.”
OBAMA: He called for action by the White House and Congress “to do our work openly, and to give our people the government they deserve.”
THE FACTS: Obama skipped past a broken promise from his campaign — to have the negotiations for health care legislation broadcast on C-SPAN “so that people can see who is making arguments on behalf of their constituents, and who are making arguments on behalf of the drug companies or the insurance companies.” Instead, Democrats in the White House and Congress have conducted the usual private negotiations, making multibillion-dollar deals with hospitals, pharmaceutical companies and other stakeholders behind closed doors. Nor has Obama lived up consistently to his pledge to ensure that legislation is posted online for five days before it’s acted upon.
OBAMA: “The United States and Russia are completing negotiations on the farthest-reaching arms control treaty in nearly two decades.”
THE FACTS: Despite insisting early last year that they would complete the negotiations in time to avoid expiration of the 1991 Strategic Arms Reduction Treaty in early December, the U.S. and Russia failed to do so. And while officials say they think a deal on a new treaty is within reach, there has been no breakthrough. A new round of talks is set to start Monday. One important sticking point: disagreement over including missile defense issues in a new accord. If completed, the new deal may arguably be the farthest-reaching arms control treaty since the original 1991 agreement. An interim deal reached in 2002 did not include its own rules on verifying nuclear reductions.
OBAMA: Drawing on classified information, he claimed more success than his predecessor at killing terrorists: “And in the last year, hundreds of al-Qaida’s fighters and affiliates, including many senior leaders, have been captured or killed — far more than in 2008.”
THE FACTS: It is an impossible claim to verify. Neither the Bush nor the Obama administration has published enemy body counts, particularly those targeted by armed drones in the Pakistan-Afghanistan border region. The pace of drone attacks has increased dramatically in the last 18 months, according to congressional officials briefed on the secret program.
Associated Press writers Jim Kuhnhenn, Jim Drinkard, Erica Werner, Robert Burns and Pamela Hess contributed to this report.
Posted in Current Events, Health, News, Politics, Tyranny
Tagged Big Government, Democrats, Medicaid, Medicare, Obama, Obamacare, Social Security, socialism, socialized medicine, Stimulus Bill, Totalitarian Government, Washington, White House
Posted in Current Events, News, Politics, Taxes, Tyranny
Tagged Big Government, California, Democrats, Global Warming, Nancy Pelosi, Obama, socialism, Taxes, Totalitarian Government, Washington, White House
I got a pre-declined credit card in the mail.
CEO’s are now playing miniature golf.
Parents in Beverly Hills fired their nannies and learned their children’s names.
A truckload of Americans was caught sneaking into Mexico.
Motel Six won’t leave the light on anymore.
The Mafia is laying off judges.
Exxon-Mobil laid off 25 Congressmen.
And, finally….
I was so depressed last night thinking about the economy, wars, jobs, my savings, Social Security, and retirement funds that I called the Suicide Lifeline. I got a call center in Pakistan, and when I told them I was suicidal, they got all excited, and asked if I could drive a truck……….
Posted in Business, Current Events, Family, Fatherhood, Humor, Investing, Surivial, Taxes
Tagged Beverly Hills, Big Government, California, Congressmen, Democrats, Exxon-Mobil, Harry Reid, High Taxes, Mexico, Motel Six, Nancy Pelosi, Obama, Obamacare, Pakistan, socialism, socialized medicine, Stimulus Bill, Taxes, Totalitarian Government, Washington
Posted in Business, Current Events, Family, Investing, News, Politics, Taxes
Tagged Afghanistan, Big Government, Bush tax cuts, CIA, Comeback America: Turning the Country Around and Restoring Fiscal Responsibility, Committee on the Fiscal Future of the United States, Congressional Budget Office, constitutional republic, defense, Democratic Congress, Democrats, Department of Homeland Security, dot-com bubble, Earned Income Tax Credit, Empire of Debt, FBI, Financial Crisis Inquiry Committee, Food Stamps, Freedom, Goldman Sachs, Government Accountability Office, housing bubble, interest on the debt, JPMorgan, Lehman Brothers, Medicaid, Medicare, military, MSNBC, Obama, Pat Buchanan, Reform Party, Republican, Social Security, socialism, socialized medicine, Stimulus Bill, sub-prime mortgage securities, Taxes, The American Conservative, Tim Carney, U.S. national debt, unemployment insurance, Wall Street, Washington, White House
Tagged Democrats, Joe Biden, Nancy Pelosi, Obama, Veterans of Foreign Wars
Many Christians felt strongly rebuked when Billy Graham first read the following letter, written by an American college student who had been converted to communism in Mexico. The purpose of the letter was to explain to his fiancée’s why he must break off their engagement:
We Communists have a high casualty rate. We’re the ones who get shot and hung and lynched and tarred and feathered and jailed and slandered, and ridiculed and fired from our jobs, and in every other way made as uncomfortable as possible. A certain percentage of us get killed or imprisoned.
We live in virtual poverty. We turn back to the party every penny we make above what is absolutely necessary to keep us alive. We Communists don’t have the time or the money for many movies, or concerts, or T-bone steaks, or decent homes and new cars.
We’ve been described as fanatics. We are fanatics. Our lives are dominated by one great overshadowing factor, The Struggle For World Communism.
We Communists have a philosophy of life which no amount of money could buy. We have a cause to fight for, a definite purpose in life. We subordinate our petty, personal selves into a great movement of humanity, and if our personal lives seem hard, or our egos appear to suffer through subordination to the party, then we are adequately compensated by the thought that each of us in his small way is contributing to something new and true and better for mankind.
There is one thing in which I am in dead earnest and that is the Communist cause. It is my life, my business, my religion, my hobby, my sweetheart, my wife and mistress, my bread and meat. I work at it in the daytime and dream of it at night. Its hold on me grows, not lessens as time goes on.
Therefore, I cannot carry on a friendship, a love affair, or even a conversation without relating it to this force which both drives and guides my life. I evaluate people, books, ideas, and actions according to how they affect the Communist cause and by their attitude toward it. I’ve already been in jail because of my ideas and if necessary, I’m ready to go before a firing squad.
If Communists can be as dedicated as this for their cause, how much more should Christians pour themselves out in loving, glad devotion for their glorious Lord. Surely if the Lord Jesus is worth anything, He is worth everything. “If the Christian faith is worth believing in at all, it is worth believing in heroically”—Findlay.
Posted in Christianity, Family, Fatherhood, Men, Theology
Tagged Billy Graham, Communists, Findlay, The Struggle For World Communism
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Posted in Current Events, Family, Fatherhood, Men, News, Personal Freedom, Politics, Surivial, Taxes, Tyranny
Tagged Big Government, career politicians, Constitution, Freedom, GOOOH, High Gas Prices, High Taxes, Obama, Obamacare, socialism, socialized medicine, Stimulus Bill, Taxes, Totalitarian Government, U.S. House of Representatives, Washington, White House