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The boys threw a threat on the table today, as Larry Summers, ombudsman for the pigmen, predicted that if the Congress did not pass the President's deal with the Republicans the US economy would suffer a double dip.
I thought it was a rather neat trick how Obama took an obstructionist Republican minority and cut a deal with them, thereby placing the onus on his own party and holding their feet to the fire with some particularly high-handed moralisms and snippy rhetoric on top. No Clinton he who called the Republican bluff and let them shut down the government. Wall Street shill or nincompoop, hard to decide.
Wall Street financials rallied into the close as AIG filed a recapitalization plan to pay back the huge amounts of capital it borrowed from the Treasury and Fed to pay Goldman and its ilk the full amounts of their leveraged bets.
And then Bloomberg TV cut away and spent the next twenty minutes talking about the imperative to cut 'entitlements' like Social Security and Medicare.
See the commentary provided today on the Gold intraday futures chart here.
"You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings." … Professor Wilhelm Hankel, Frankfurt University, The Telegraph, November 25, 2010
I am just thankful that Goldman and its Wall Street cronies did not have to take any losses or suffer cutbacks or austerity because of their dealings with AIG, thanks to the timely actions of their friends at Treasury and the NY Fed.
American International Group, Inc.
Wednesday December 8, 2010, 3:52 pm
NEW YORK--(BUSINESS WIRE)-- American International Group, Inc. (AIG) announced it had filed a Form 8-K earlier today announcing the signing of the Master Transaction Agreement among ALICO Holdings LLC, AIA Aurora LLC, the Federal Reserve Bank of New York, the United States Department of the Treasury, the AIG Credit Facility Trust and AIG, regarding a series of integrated transactions to recapitalize AIG, for which trading on the New York Stock Exchange was briefly interrupted.
Regarding the filing of the Master Agreement, AIG issued the following statement:
"Our filing today that we have signed the definitive recapitalization agreement with the government marks an important step forward in our progress toward completely repaying taxpayers. We remain committed to executing the steps and meeting all conditions in the agreement as soon as possible."
