Lehman files! BoA buys Lynch! AIG begging Fed!

[nathan28]

I am very pessimistic about financial markets, but even in the face of this news (it just keeps getting worse), my "gut feeling"--which I don't act on--is oddly... good. I'd take that as a contrarian indicator that this is somewhere between "elevated alert" and "zombie apocalypse" on the bad scale

[8bitagent]

For the first time I am really starting to feel uneasy. Just in the last few days a weird feeling has come over me. I have known what the possibilities are all along, for years.

The laws that have been passed, which in essence are perfectly designed for...mmmm...perhaps financial collapse, bank runs, and basically any situation in which anarchy might be present, or angry people might want to act out.

I have learned that this gang usually doesn't pass laws they don't use. There are examples a plenty to be found. Passed a law one year that said they can inject whatever they want into people by force of law, and the next year they lined up 14 year old girls and threatened to jail their parents if they didn't get them vaccinated for venereal warts....warts...of all damn blasted things....kickback scheme heaven probably...they sell us and tax us on the number one killer in the world which is cigarettes, and want to put mommy in jail if she won't let the pharm companies make triple dollars selling the government wart vaccine...

As I reflect on all that I have learned and seen in the last five years, suddenly for the first time, I sincerely have a chill running up and down my body, and a sick feeling in my gut right now...its bad too.

I sincerely hope my radar is just jammed, but I have a real bad feeling about the coming days and months.......for the first time....

I have been able to put together equations from my own observations in the last few years, and then watched them come true over and over much to my own surprise.

The equation my mind has formulated in the last few days is enough to cause me nausea. I'm no longer surprised when they come true.

My ability to convince myself, that this equation will not come true, due to my past success, just isn't here....

I have an eerie feeling........Jeff is eerily quiet these days too...i noticed.

I agree.

I remember when the "impending financial collapse" was just Alex Jones and right wing conspiracy patriot/Liberterian radio discussion.

Now it's happening.

Merril Lynch
AIG
Lehman
Indy Mac
Bear Stearns
Fannie Mae
Freddie Mac

Also, Morgan Stanley as well as City Group have been hurting and have laid off a large portion of their employees.

Today on Infowars there was a damn good article on the history of this stuff and where it seems to be headed:
http://www.infowars.com/?p=4604

[dqueue]

What of Greenberg-Traurig, for whom Jack Abramoff "lobbied", etc? Same Greenberg clan? I think I approach Chapel Perilous...

This post comes with a sense of deja-vu for me...

Thanks for the AIG background info.

[8bitagent]

For the bargain price of an $85 billion loan, US taxpayers now hold a 79.9% share of AIG.


Not exactly...its worse than that the way I see it. 12 or 13 private families, that own the Fed have an 85 billion dollar stake in AIG, and they plan to use our money to buy it for themselves. They already bought every major investment bank in the country almost, and signed our name to the check, through our treasury.

It seems that the fed is making the loan, and waving the treasury secretary around like a flag to make it appear as if this is a government bailout.

Our government is broke as hell. They don't have any money. They are in debt up to their eyeballs to the fed, which means the fed owns them and us. The fed instigated all these damn wars and used our money for it, then they had to lend the country more to continue them.

These assets belong the private families that own the fed, not us...but we'll pay their bill, just like we always have, every since they inked the deal on Jekyl Island back in the twenties.

That is "exactly" what this is all about...a transfer of wealth from us, to them, for the next few hundred years at least, or until they "reset" the debt tables again, and put us in debt for another hundred.

They just milked the golden goose again...

Fe Fi Fo Fum I smell the blood of an englishman.......

Not to mention in debt to China.

How many billions have been spent to murder innocent Muslims "in the name of Freedom" since 2001?

[isachar]

Let's be clear. Earlier today, it was reported AIG was seeking a $40 billion credit facility. The market showed them to have a market cap of just $10.8 billion as of today.

Yet we now hear as of this evening that the Fed, et.al. are going to give AIG an $80 BILLION loan, secured by their assets. Against a valuation of $10.8 Billion.

Geez, that means I should qualify for a FED loan of oh, about $4 - $5million. And I ain't worth all that much. Where do I sign?

Corporate socialism laid bare.

The Sunday event in which the derivatives market was opened to trading by invitation only to a handful of well-connected firms/brokers is the smoking gun. I wanna see documentation of all parties and all trades made that day.

But only 1 - 3% of the populace of the us can comprehend these events, so the insider deals and crimes being committed are unprosecutable because their are literally, incomprehensible.

[vigilant]

I am very pessimistic about financial markets, but even in the face of this news (it just keeps getting worse), my "gut feeling"--which I don't act on--is oddly... good. I'd take that as a contrarian indicator that this is somewhere between "elevated alert" and "zombie apocalypse" on the bad scale

Even considering the "odd feeling" I said I have, I also have a flip side too. The way this has been constructed, I can also see a possibility for this thing not to go to great depression levels. It was done a different way this time.

It really depends on what the end game is. We have bus drivers that have been hiding in the wings for many years. They have just stepped up to the plate and declared ownership to the rest of the powers of the world that understand what is really going on. In a way we have new bus drivers, but in a way they have been driving from behind the veil all along. This is a bold move though. It may include bolder plans down the road, and I suspect it does. Since we are the pack mules they use to fund their endeavors, our fate is in their hands. Their plans may not necessitate a serious change in our lifestyle, but it might. A change of currency for the all of north america in an effort to standardize it might get rough.

The "odd" part I identified actually comes from a different angle than economic collapse. It would be hard for me to put into words right now.

[ninakat]

From Mike Ruppert:

I knew they would never let AIG go down. There's too much government dirty laundry there. Covert ops would collapse as well. No, I think it's clear now. What's going down is not Wall Street; it's the government of the United States of America -- to keep Wall Street alive.

It's on the map.

For more information, see the two-part series FTW was running on AIG which was "interrupted" by 9-11.

http://www.fromthewilderness.com/free/c ... art_2.html

MCR

----

What's smelly is that AIG's bankruptcy ($632 billion) is ten times larger than Enron at $63 billion. This is the 400 trillion derivatives bubble popping. Total drug flows are only $600-700 billion a year, not all of which goes through US companies. AIG needs maybe $70-100 billion NOW to service its bad debt plus the claims it will face from Ike and Gustav. Their housing paper is never going to recover value because of Peak Oil and already shattered demand. This is bigger than the drug trade can help with. Drug cash was used to keep the system liquid when it was strained and wobbly five years ago. Now it's onlife support.

Recent market rigging only hastened the implosion. I suspect that too much demand may have been destroyed and what we're seeing is that falling (bombed) oil prices are not producing new revenue streams. People are either chosing NOT to return to old patterns or they cannot.

Good, let the shake out happen right now!

MCR

[ninakat]

Jim Sinclair is worth reading regarding all the dominoes falling. He's been warning about the OTC derivatives meltdown for quite awhile now -- probably years from the sound of it. And although he, like many others, didn't see the recent dollar rally coming, he isn't one bit deterred from his prediction of gold going to $1650/oz by January 2011.

Lots of current articles on AIG and the fall-out of Lehman, with Jim Sinclair's commentary here:

http://tinyurl.com/63kvlw

[vigilant]

What's going down is not Wall Street; it's the government of the United States of America -- to keep Wall Street alive.


That is one of the most succinct, neatest, and sweetest ways I have seen it put.

I would add one twist.

What's going down is not Wall Street; it's the government of the United States of America -- to keep Wall Street alive, so that Wall Street itself, along with its hidden "off balance sheet assets", may be transferred to its new owners.

[anothershamus]

He seems to think somethings up.

Sinclaire wrote:

You think the Fed blew it in their decision between a rock and a hard place? The Fed and Treasury will bail them all out at least until November.

The shit has hit the fan because trillions of dollars of OTC derivatives failed Monday.

If this is the death of Wall Street as we know it, the tombstone will read: killed by complexity.

The roof has fallen, it has already hit the fan, and if you are not a direct victim, you still don't have a clue.

This is certainly what is called the "Domino Effect" from the Lehman failure.

WaMu, our next most likely problem, will be saved. Maybe UBS will be given access to the Fed Begging Bowl Window directly (or indirectly) because they are principle to huge amounts of OTC derivatives in North America.

Between now and Election Day any bank or financial entity wanting rescue only needs to say the word bankruptcy. The Fed will put up the money, lend to, or accept a risky deal for a second party to take over WaMu.

All this is very gold POSITIVE. Creating so many new dollars will make the job of keeping the dollar rally going to Election Day quite difficult.

'We are facing an unprecedented financial crisis' because it stems from 'the heart of the system,' the United States, and not from its 'periphery' and has affected the whole world simultaneously.

'Something new is more dangerous than something that happens repeatedly, but a difference with (the financial crisis of) 1929 is that we have instruments which don't allow us to avoid the crisis but to soften the consequences and correct their effects,' in particular the IMF, he said.

He spoke amid fears of a domino effect in the global financial system after troubled investment giant Lehman Brothers (nyse: LEH - news - people ) sought bankruptcy protection.

The world's major couterparties on the $US455 trillion derivatives market go into technical default and no one is sure what is going to happen.

SIPC and FDIC are going to have to be bailed out very, very soon.

The Federal Deposit Insurance Corp., whose insurance fund has slipped below the minimum target level set by Congress, could be forced to tap tax dollars through a Treasury Department loan if Washington Mutual Inc., the nation's largest thrift, or another struggling rival fails, economists and industry analysts said Tuesday.

[FreeLancer]

Time to make an ammo run.

[bks]

isachar wrote:

Corporate socialism laid bare.

The Sunday event in which the derivatives market was opened to trading by invitation only to a handful of well-connected firms/brokers is the smoking gun. I wanna see documentation of all parties and all trades made that day

.

Spot on. Is this a matter of public record?

[chlamor]

The failure of AIG would have brought down as many as 1000 banks and "financial services companies" worldwide. Knowing this, the following is the chronology:

1) AIG started pestering the Federal Reserve Bank of NY for a loan a couple of weeks ago (the rumor is that they wanted $10-20billion). The head of the bank is an up and comer and basically he told them "no bailout" (good for the career).

2) The state of NY and virtually the entire NY Congressional Delegation (while publicly decrying "Wall Street handouts" with the "taxpayer's money") went into a panic. A deal was worked out in which the State would suspend a rule that would allow AIG to borrow $20billion from its subsidiaries (in effect, allowing an internal "bad loan" with depositor's money). The deal was off by Wednesday if AIG did not find the money elsewhere.

3) AIG essentially did nothing but ask the Fed for a new loan (this time for $40 billion).

4) The Fed met today and refused to lower the rate to further "stimulate" the economy. They took the opportunity to make a very strong statement to the effect that Paulson and Bernake were now out of the "bailout business" - see Lehmann.

5) As news filtered out, AIG declared that they would have to go bankrupt when NY pulled the rule change on Wednesday.

6) In a mood of near hysteria, and with the agreement of nearly the entire Democratic leadership, the Treasury/Fed folded within hours and the deal was done for $85 billion.

7) At this rate, if the deal had gone on one more day, AIG would have asked for $160 billion.

WaMu next...

(BTW, I know all this, including a good bit of "insider" detail, because everyone that I have ever known in a position of authority suddenly feels the need to quiz me, the commie, on the crisis - so completely bankrupt and useless has their "theory" and ideology become.

"Are we well and truly fucked?"

I solemnly nod my head, "Yes", knowing full well that it ain't true but hoping for an unexpected coronary or some gratuitous chewing of the carpet.)

[8bitagent]

If WaMu is next, you know the shit is pretty much hitting the fan.

[nathan28]

If WaMu is next, you know the shit is pretty much hitting the fan.

As one financial commentator wrote, "Bullish for America: Bankers Get Real Jobs." hey, three more bank collapses, and we'll have an economy again. it's not all bad.