Monday, April 20, 2009

The REAL story behind the AIG Bailout

You've heard the "official" story. You've heard the rumors. You've even heard the histrionics of the left/right wing media sycophants. Here is the TRUTH about another puzzle piece of how the so called, "Insiders, NWO Elite, Global Government Elite," etc., have leveraged their way into domination. If you want to know who to blame, look below. They have wreaked untold misery. death, destruction and poverty upon ALL groups of people on this planet. They want Earth to be THEIR personal planetation and the rest of us (if we survive their depopulation attempts) to be their slaves. It is time to fight back.

ou know about the American International Corporation today only because of the greed of the executives in one of its subsidiaries, American International Group [AIG}. If we use a search engine, we know AIG as a global insurance company founded in Shanghai, China in 1919. But when we walk past the American International Building at 70 Pine Street in New York where AIG is headquartered, we think of it as the AIG Building. It's not. It's the AIC Building. There is a difference.

We know that AIG, the insurance giant which has pretty much dominated the headlines for abusing the use of $170 billion of TARP money received from the pockets of working class taxpayers, is a behemoth global insurance carrier—and one of the most powerful corporations in the world. But, if you ask anyone on the street to name the world's largest insurance company no one, until now, would have suggested it might be AIG. They will answer either MetLife (Metropolitan Insurance Co.), which has $3.3 trillion if insurance in force, or Prudential which has $2 trillion. Yet, AIG is larger than the top five "household name" life insurance companies put together. It has 375 million policyholders and over $19 trillion of insurance in force. Why in the world did AIG need a bailout?

The AIG subsidiary that caused most of the unsecured losses for the company was AIG Financial Products Corp, (the derivatives division) in London, England. AIG said its "bad bet" losses (totaling $40.5 billion last year) were the result of using what are known as "credit default swaps" that promises investors payments in mortgage bonds in the event of a default. The "credit default swaps" were used to help financial institutions insure their subprime securities holdings. As the losses mounted throughout 2008 over the subprime meltdown in 2007, AIG depleted its capital reserves—not by covering its debt owed to the financial organizations who expected payment in mortgage bonds from a company whose parent's word has been its bond since 1910, but in an AIG stock buyback as its stock plummeted in value.

When the US taxpayers, who oppose bailing out the rich, learned that AIG planned to use $450 million of the TARP money to pay promised bonuses to executives (but only after it had already shelled out $165 million of the original $170 million to executives in its derivatives department in London) the proverbial brown stuff hit the fan in Washington, DC. (It should be noted that AIG FP also has an unobtrusive office at 50 Danbury Road in Wilton, Connecticut. The building is the US headquarters for AIG FP. AIG FP in Wilton also handles derivative contracts, but it's unknown if any, or how many, US employees have, or will, received any of these extravagant bonuses.

The Democrats—the 21st century equivalent to the 1920s Keystone Kops, who proudly call the spending bills they single-handedly rammed through Congress without a single GOP vote a "bipartisan effort" (between liberal and moderate Democrats) are now feeling the type of backlash that causes arrogant politicians to lose their jobs and control of Congress to shift from one party to the other. When the politicians stick their hands too deeply into the pockets of the taxpayers, the taxpayers tend to remember the theft the next time they step into the voting booth—particularly when the great, great grandchildren of those taxpayers will still be paying the bill. The rich fat cats who profited from the financial meltdown of 2008 (reminiscent of the Bank Panic of 1906), will also still be recalling the Bailout of 2009, but they will remember those days as the turning point when the working class was returned to their medieval roles as the chattel of the overlords of banking and industry. MORE HERE