A Good public broadcasting video worth watching.
Found by Scott Diaz.
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Great video! That explains why they are keeping AIG afloat and Liddy is the scapegoat! Bush was a sorry president but very loyal to his good ol’ boys! AIG should have failed and taken all these others idiots like Goldman Sucks with them.
Interesting…
So what does “Sam” do with the $3m AIG bond? Does it just sit there and earn nothing? Is it invested in US treasury bonds? (Which would put the money back in to the government’s pocket for a while).
What does AIG have on “Sam” to assure that they get their bond back when “Sam’s” GM bonds mature?
It still doesn’t explain why the taxpayers have to cover AIG’s bets. What would happen if AIG refused to honor the call for more bond? Or if AIG failed? The reason is that “Sam”, which might be a pension fund, can’t have any risk. If their insurance policy is worthless, then Sam would have to dump their investment, driving down the market.
So in other words, Uncle Sam has become the insurer or the bond market.
No matter how thin you slice all of this, its all baloney! AIG: No, we will not give you, Sam, $$$ for collateral, we will, however, adjust your monthly payments to us in order to compensate and adjust them upward to the original level when things improve for us. DUH!
Who the hell comes up with these “Can’t Fail but always do” schemes? Like they’re gambling with OPM (Other People’s Money) which they were and didn’t give a flying shitt.
How come it doesn’t work that way for the rest of us.
In this example if the bond (GM) becomes riskier Sam gets more money. In the world the rest of us live in if our Car or Home is at more risk the cost to us goes up to us not to the insurance company.
Ponzi’s 1st cousin process