It is no secret that we are in the midst of an economic meltdown that can only be compared to one or two similar cycles of economic turmoil, however in those previous economic downturns the Government did not spend Trillions of U.S. taxpayer money to bail out foreign banks and domestic corporations. The Government is printing Trillions of dollars in an attempt to fix the current economic crisis, which in the long run will lead to the devaluation of the dollar against world currencies making the situation worse.
In the modern era the US dollar is not backed by the gold standard as it was for the first two hundred years of this countries existence. In today’s market, the dollar is just a piece of paper and the value of it is decided by traders day after day. What makes our current situation so frightening is that our current Government is printing and spending Trillions of dollars to bail out foreign banks and financial institutions.
The company American International Group (AIG) is a perfect example to illustrate why the United States is heading down a very slippery slope in bailing out foreign banks. If you didn’t already know, the United States Government has given AIG $173 billion dollars in bailout money. AIG reported the largest quarterly loss in United States history last quarter at $61 billion. They were just given another $30 billion by the United States Government last week. The most frightening thing is that no one knows where all the $173 Billion ended up. Recently, the Wall Street Journal compiled a list of various banks, foreign and domestic who have received at least $50 billion of the $173 billion given to AIG by the United States Government. It is unconscionable that in today’s economic climate with foreclosures at a record level that the United States Government would hand out such large amounts without precise accounting to see that every penny is being properly utilized.
The Downfall of AIG: AIG was heavily exposed to toxic assets, seen as the root product cause of the credit crisis through its London-based financial products unit, which guaranteed hundreds of billions of dollars worth of credit instruments. “They wrote a lot of insurance cover on default swaps for financial institutions all over the world,” one market source told Reuters on Friday. So in essence, the United States Government is bailing out foreign banks who contracted with AIG to insure the toxic assets on their books. In plain meaning you and I are paying for their mistakes.
Back when the times were good and these FAT CAT BANKERS were paying themselves multi-million dollar bonuses everything was rosy. Now that their ponzi scheme has come tumbling down, the United States Taxpayers are left holding the bag by bailing out these foreign banks.
At least two dozen American and European banks benefited from the bailout of AIG, with approximately $50 billion paid out to them since the Federal Reserve first gave aid to the insurance giant, the Wall Street Journal reported Saturday.
Here is a list of the banks, domestic and foreign who have received huge sums of money from United States Taxpayers to bail out foreign banks through AIG:
Goldman Sachs- Received $6 Billion
Deutsche Bank- Received $6 Billion
Société Générale – Received $4.8 Billion
Calyon – Received $1.8 Billion
Barclays – Undisclosed
Danske – Undisclosed
HSBC – Undisclosed
Royal Bank of Scotland- Undisclosed
Banco Santander -Undisclosed
Bank of America- Undisclosed
Lloyds Banking Group- Undisclosed
I find it interesting that Goldman Sachs was one of the biggest beneficiaries of the money given to AIG by US taxpayers to bail out foreign banks. Our current treasury secretary Henry Paulson the former CEO of Goldman Sachs, has a net worth of over $700 million dollars and without a doubt still has millions of shares of Goldman Sachs stock. Did he oversee a personal bailout for himself at the expense of the United States taxpayer money that was supposed to be used to bail out foreign banks? The rest of the foreign banks will not disclose the amount received from AIG that came from US taxpayers, but with political pressure mounting that door will blow open any day and we will all get a glimpse of how the FAT CAT BANKERS have taken the world hostage when the “secrecy” is shattered.
For the most part the banks listed in this article have put the world’s economy in its current major meltdown mode. They did it knowingly by issuing guidelines for loans that were risky, toxic, and in most cases they knew would go bad. They expected real estate prices to keep escalating so the borrower could just keep refinancing out of these toxic loans into other loans which would keep lining their FAT CAT BANKER pockets.