The U.S. Federal Reserve Board on Tuesday said the Federal Reserve Bank of New York will lend up to $85 billion to the American International Group in a plan aimed at saving the insurer from a "disorderly failure" that could wreak economic havoc.
The Fed said under the two-year facility the U.S. government will receive a 79.9 percent equity interest in AIG and has the right to veto payment of dividends to common preferred shareholders in the deal, which has the full support of the Treasury Department.
"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 Fed said in a statement.
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This is what you get when the government deregulates per republican economic doctrine.
That doctrine being when you deregulate those with the most money from making more money it will enable those "big wheels" to drive the economy through further investment.
Unfortunately what the republican doctrine does NOT take into effect is that same volatility that enables massive profits also enables massive loss.
This is further outlined in the book "Angler: The Cheney Vice Presidency," by The Post's Barton Gellman.
I recommend it.
So where do we stand today?
$100 billion for Fannie Mae and Freddie Mac
$25-50 billion for the auto industry
$85 billion to AIG
$467 billion for military contracts since 2006
I don't have enough toes to count that high, but what I do know is I still can't find a job in this market.
What the government does in situations like this and has for the last 60 years is print more money.
This results in devaluing your wage and mine providing we have jobs and amounts to an unauthorized taxation.
On the plus side it was sunny and nice outside in Detroit.
Welcome To Detroit
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