DID BUSH/PAULSON AND HIS SUCCESSORS FORCE CONGRESS TO ACT TOO QUICKLY?

This week two of the largest recipients of TARP funds, Goldman Sachs and Bank of America have announced they no longer need help and are plan to hand back their TARP funds before the end of April. I suppose that is good news for the American taxpayers. However what is baffling me is the AIG nonsense. Putting the bonus fiasco to one side, I am absolutely angry to learn most of their bailout money was quickly passed out to the world’s major banks, including Goldman Sachs and the B. of A. to pay out on lost bets. I originally thought AIG were like the Investment banks and were up to their eyeballs in toxic debt caused by the securitization of sub-prime mortgages. Never did I think, banks could even wager their way out of the serious business of finance, but moreover find a bookmaker who would take on their bets.

AIG may have been the biggest insurance company in the world, but now that I know the reason for their failure, I am disgusted the government has again intervened to perform its normal trick of helping big business. Paulson, a bible bashing billionaire, who made his fortune as Chairman/CEO of Goldman Sachs went into bat for AIG solely so he and his buddies could collect on their wagers. I have difficulty handling my own personal budget, so I know I am certainly no expert when it comes to high finance, but methinks the average American has again been duped. We already had handed money over the banks to assist with their liquidity and now we learn these dirt bags have enjoyed a double dip of the TARP funds. No wonder two banks so far can hand money back to Uncle Sam once AIG ponied up.

For my money now I know AIG’s debt was centered around acting a bookmaker for Wall Street, no-one can convince me that they didn’t deserve the same fate as Lehman Brothers. They should have been cast to the wind. Who cares if their good assets were sold at fire sale prices? Their competitors would have picked them up with no cost to the policy holders. As for the stockholders, it just would have been another punt gone wrong. Now the government is saddled with owning 80% of the company and as each month goes by it looks like their “investment” will become even more worthless. Why? Because potential buyers of the assets know it is easier to screw the government than it is a liquidator.

Tags: AIG, Bank of America, Bush, Goldman Sachs, Lehman Brothers, Paulson, TARP, Wall Street