moonlightcowboy's WunderBlog

AIG will still ask for more.

By: moonlightcowboy, 3:09 AM GMT on February 14, 2009



The BIG FELLA is back as I knew he would be!




NOTE: I think it's important that we don't lose track of the size of these figures being thrown around as they are so casually now! So, consequently, I'm extending them out in long form instead of abbreviated to not trivialize them. THESE ARE HUGE, HUGE NUMBERS! And, imo, need to be taken considerably more seriously!

AIG: The BIG FELLA, nearly exasperated continues to grasp for dying breath!


So, AIG gets another $30,000,000,000 taxpayer-funded help, so what! $150,000,000,000 hasn't helped them - piling up another $60,000,000,000 loss! How long are we going to keep this up? Until the FED'S coffers are emptied? Until we burn the bearings up on the printing presses?

What I find particularly interesting is that each time we slip a band-aid over the gushers that open up on this wretched stench of a company, we find out a bit more information. What has been reported as a relative "subsiding" of their exposure to losses from $400 billion in CDS is now being reported to still be very vulnerable to losses of about $300,000,000,000. On top of that, now we see a new suspect figure enter the scenario that may quantify the depth of this ugly credit-default swap market to a shocking figure of $28,500,000,000,000! (That's my first time seeing this figure associated with the problem and I'm even more blown away!) Now, you tell me, please, how is $30 billion more going to help this dying gorilla? It makes me wonder if AIG's exposure to CDS losses is only $300 billion? Who else is left out there secretly holding a sad sack of shucks, biding their time for a handout, too? Warren Buffet? Bill Gates? King Abdullah?

AIG doesn't need band-aids, it needs stitches and staples to stop the bleeding. Honestly, I don't see how it can be saved! But, I'm sure entertaining to anyone's thoughts of that possibility - definitely like to hear it!

Are we going to piecemeal our demise with $30 billion here, $60 billion there? Is that the plan? That may not be a bad plan, but ultimately I don't think there's any saving this overgrown, archaic and corrupt robber baron. He has pillaged, gambled and lost all his money and most of ours! It's time for him to hit the trail - the town's people will pick up the pieces behind the big, ugly and smelly fella! Good riddance!

PROPPING UP A HOUSE OF CARDS

FDIC raising fees on banks, charging emergency fee to rebuild depleted insurance fund

Get Ready for Mass Retail Closings
Retail goods on sale -- perhaps permanently.
And the 'worst is yet to come:' Americans' standard of living permanently changed.

The Federal Reserve - a privately-owned banking cartel
Quadrillion=10^15. Derivatives?
US banks "insolvent" - bankruptcy looming
Here comes Obama: "The Trillion Dollar Man"
Unhappy Anniversary: NAFTA Fifteen Years Later
Cranking Up the Presses - a MUST read!
The Coming of the Second Great Depression?
Seeing the Pattern: 1929 and 2008
Hastening the Glut of Relocating Factories Overseas
What CANADIANS are saying about NAFTA after 15 years.

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(There are links to the right under "Recommended Links" to help you contact your Representatives and Senators. Tell them to renegotiate or revoke our trade agreements which have robbed us of our jobs and really, our sovereignty!)


Simple rules in this blog: Keep it absolutely civil, especially towards fellow bloggers. And, don't get heavy on the partisanship - it's quite obvious that corrupt, petty, inept, greedy, power-lustful politicians are plentiful on both sides of the aisle. It's ok to take jabs at them - either party, any official or candidate; but, leave the total "blame game" out of this - it's ALL of them, everyone! If you think otherwise, then you probably don't want to bring it in here!

...see ya 'round the blogosphere! Have a good one!


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Quadrillion=10^15. Derivatives?

By: moonlightcowboy, 6:56 PM GMT on February 08, 2009




Remove "millions" from your immediate vocabulary. It’s outdated and no longer has use in political language. “Billions" can also be kept at arm-reach as "trillions" has become the new appropriate, politically-correct and common terminology. But, is there a new 800 lb gorilla about to enter the room? Likely, and his name is "Quadrillion!" Surprised? Here's how it looks: 1,000,000,000,000,000. And, I don't even want to think of how many times that sum would stretch to the moon and back - let's just say "many times" and save that brain energy for pouring more coffee.

The current see-saw debate Congress is having over Obama's spending plan pales in comparison and is simply "political cover" for what is forthcoming. They are merely "throwing us a bone" to make it appear that they are "doing something" to help with American job losses. However, in reality it's just part of a larger scheme to soften our palpability to another gargantuan bank-bailout and a cushion for the gorilla about to plop his big, ugly self down. Recently, it was noted that US banks are still dramatically under-capitalized, facing more than $3.6 trillion in additional credit losses as the financial crisis broadens. You may have already heard sound bites indicating that there will be another "bailout bill" coming soon - this time likely trillions in another attempt to re-capitalize the failing banks. Think that's bad news? Well, it gets worse, far worse - the 800 lb gorilla still lies ahead.

There are over $600 trillion (careful, that's trillion, not billion) in credit derivatives steadily tanking as we speak, effectively draining world liquidity. Stumped yet? Derivatives (though I've never seen one) are basically "insurance policies" that cover large loans in case of default. But, it wasn't just the homeowner as we’ve been led to believe that was hedged to fail, it was the paper itself - bundled repeatedly, replicated and sold that became gargantuan. The heavier and deeper these derivatives grew the more volatile they became. Ultimately, they all default because no one, no one fund is solvent enough to cover these large losses. And, now we know why the Fed's money-printing presses have been working 24/7 - they can't print enough money fast enough to fill these default holes.

Consider for a moment that the "combined" world stock exchanges represented only a mere $62.5 trillion in the fall of 2007 (though it fell to $36.6 trillion in the fall 2008); we're talking small potatoes compared to the dark derivatives market that is sucking the US and the world dry. Federal Reserve Chairman Ben Bernanke knows this – he sits on the board of the Bank for International Settlements, a consortium of the world's central banks. $600 trillion in derivatives is what the consortium has estimated and claim is now maturing, emptying depositories and keeping credit markets clogged. Amidst the secrecy shroud, it’s my guess that it’s much bigger and we'll soon hear the term “quadrillion.”

We've been hoodwinked by every conceivable excuse for the financial crisis - from poor folks that should never have been given mortgages, to corrupt politicians like Barney Frank who couldn't balance his own checkbook much less comprehend the scale and scope of what's happening or do anything about it, to shady Wall St traders who were just trying to pay for their yachts and beach homes. Sure, it's all complicit, but none hold a candle to the dark dealings in derivatives, unregulated and obscure with a life and death of their own making.

What can be done? Clearly, it's going to take larger minds than out-of-work lawyers in Congress, or Presidential soothsayers and Chairman Bernanke’s team. Personally, I give them two chances of resolving this mess: slim and none. Certainly, nothing will be done quickly to stave off children’s hunger pains caused by laid-off parents. The stimulus plans have been noble, but they miss the mark. Now, with a job lost every 13 seconds, it seems unlikely that more obtuse spending will dissuade the crisis. The financial elite are fighting a beast they can't beat - their gorilla has slipped and busted it on a banana peel of epic proportions in a quintessential, wrecking slide of greed and corruption. Unfortunately, he has bruised more than his pride, leaving millions jobless, perhaps homeless and hungry for answers.



RELATED READING: Who Cooked The World's Economy Some really interesting stuff in this article, too, about Bloomberg. It's a good read! (;P thanks!)

US banks "insolvent" - bankruptcy looming
Here comes Obama: "The Trillion Dollar Man"
Unhappy Anniversary: NAFTA Fifteen Years Later
Cranking Up the Presses - a MUST read!
The Coming of the Second Great Depression?
Seeing the Pattern: 1929 and 2008
Hastening the Glut of Relocating Factories Overseas
What CANADIANS are saying about NAFTA after 15 years.

Photobucket
(There are links to the right under "Recommended Links" to help you contact your Representatives and Senators. Tell them to renegotiate or revoke our trade agreements which have robbed us of our jobs and really, our sovereignty!)


Simple rules in this blog: Keep it absolutely civil, especially towards fellow bloggers. And, don't get heavy on the partisanship - it's quite obvious that corrupt, petty, inept, greedy, power-lustful politicians are plentiful on both sides of the aisle. It's ok to take jabs at them - either party, any official or candidate; but, leave the total "blame game" out of this - it's ALL of them, everyone! If you think otherwise, then you probably don't want to bring it in here!

...see ya 'round the blogosphere! Have a good one!


visitor stats
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Lil bit of this, lil bit a that

By: moonlightcowboy, 2:08 AM GMT on February 08, 2009



...it's all in the game! How many times must I tell you, baby?
Meet with your black drawers on!



...got a dog?


Simple rules in this blog: Keep it absolutely civil, especially towards fellow bloggers. And, don't get heavy on the partisanship - it's quite obvious that corrupt, petty, inept, greedy, power-lustful politicians are plentiful on both sides of the aisle. It's ok to take jabs at them - either party, any official or candidate; but, leave the total "blame game" out of this - it's ALL of them, everyone! If you think otherwise, then you probably don't want to bring it in here!

...see ya 'round the blogosphere! Have a good one!


visitor stats
Photobucket


The views of the author are his/her own and do not necessarily represent the position of The Weather Company or its parent, IBM.

moonlightcowboy's WunderBlog

About moonlightcowboy

"There is no heavier burden than a great potential." - Charles Schultz, in the Peanut's character of Linus.