Thursday, January 7, 2010

Geithner Hides AIG Bailout Funds

After Time Magazine named Ben Bernanke person of the year, we decided to award him with the wool puller of the year award (here). Honestly, It was difficult to narrow the contest down to just one wool puller among the two well qualified finalists with so much experience - Ben Bernanke and Tim Geithner. (Yes, Tiger Woods was third) It turns out we may have underestimated Turbo Tax Tim Geithner's wool pulling abilities and secrecy as the recent breaking news proves he's just as capable a candidate. Click here for a good explanation of what happened in the Federal Reserve/AIG coverup.

Anyway, turns out the taxpayer bailout money which was supposedly used to help AIG because it was "too big to fail", was simply pipelined right over to Goldman Sachs and other banks. (Joe Backdoor Bailout) Here's how it works. Goldman invests heavily in equities and commodities, then insures its purchases through buying equity insurance from AIG in the form of Credit Default Swaps. Then the market crashes so Goldman outstretches it hand to collect. (Joe Governator) Only problem is AIG doesn't have it, so they get bailed out by the US Taxpayer (Joe Governator again) while we have the AIG-is-too-big-to-fail wool scarf wrapped firmly around our eyes....... er, necks maybe? Yes, there's a lot of sheep shearing going on. The Fed keeps a herd of sheep out back, with three pronged outlets all over the place for heavy duty electric clippers.

I know, you were already aware that the money was funnelled over to Government Sachs and others. We've even blogged about it (here). But what we didn't know is how the Fed ensured Goldman got 100% of what they were owed when everyone else took a haircut, and also that the New York Fed, headed by Geithner at the time, advised AIG to remove this 100% language from the public filing just before it was released. See Below.

What's the problem with this? US Taxpayers own AIG whether we like it or not, and deserve to know where the money is (JoePS), how the money is spent, (Joe idiots guide), and perhaps most confusingly, where the money is sent (Joe Budget Czar with two kids, a pregnant hobby on the side, and a fiance at the same time).

So, what does this mean for Joe? It's extremely cold outside this winter. It's below freezing from Joetown, OH down to the Gulf of Mexico right now. If Joe wants a wool scarf or hat to keep warm while trying to figure out the Federal Reserve Bank, he'd better get one now before the wool is all gone. What else does it mean? It means JoAnn would need some other form of warmth with all the scarves and hats gone (Joe Silver Lining).

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