The New Big Bang

[WhiskeyGirl]

The New Big Bang

By Dan Denning • November 11th, 2008 • Related Articles • Filed Under

--"Shares may slip as U.S. mood gets darker," reports Allison Jackson in today's Australian.

--...Fannie Mae reported a US$29 billion third quarter loss. ...AIG reported a $24 billion third quarter loss. And then the U.S. government announced a new US$150 billion bailout plan.

--...Just how bad is the credit default swap problem at AIG? Pretty bad, apparently. Remember, AIG collected premia by writing credit default insurance policies against all sorts of securities, but mostly residential mortgage backed securities. It is now engaged in a mad rush to post collateral as its balance sheet falls apart.

--It's the U.S. taxpayer who's paying off AIG's credit default swap policies. And the bill just keeps getting bigger...

--After all, the Federal Reserve has loaned out over US$2 trillion through its various new lending facilities. It's refusing to tell Bloomberg who got how much money and for how long. This doesn't appear to bother anyone, except Bloomberg, which has filed a Freedom of Information Act request to force the Fed to be more transparent.

(snip)

--Without more transparency, no one knows what collateral these borrowers have posted to borrow from the Fed. And we don't know what price the Fed has slapped on that collateral, or how it even came up with a price for illiquid assets used as collateral.

--...It sounds, in fact, like the financial crisis is being used at the excuse for an enormous push toward more integration of government at the international level. One world government, you might say.

--...Moral righteousness that people smarter than you know better what you should do with your money and your life. The method? Coercion, both through taxation and suppression of individual action (thought, expression, movement).

lots of good stuff here -
http://www.dailyreckoning.com.au/the-new-big-bang/2008/11/11/

There are a lot of people who thought they were moral and righteous and knew what was best for the little people.  They made war, they killed people, and they stole their wealth.  In the end, it didn't work for long, didn't last.

jmho