Friday, November 4, 2011

Making MOney

News item, Nov. 4, 2011, LSJ
"The government provided American International Group with $182 billion at the height of the 2008 financial crisis. Treasury has recouped $18 billion of the 268 billion it provided the company through the government's Troubled Asset Relief Program. The rest of the money came from the Federal Reserve."

And where did the Fed get the money? It made it by writing numbers after the account of AIG at the Fed. Apparently, it never occurs to the FED to do the same for underwater home mortgage holders! This is why people are participating in "Occupy Wall Street" and similar protests across the country.

AIG was a profitable insurance company before it gambled on derivitives based on sub-prime mortagages. AIG got bailed out from its folly, but not the common Joe home owner who is now in the street. This is the basis for the protest signs referring to the 99%.

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