Episode-56- Lies in Plain Sight – AIG Buyout is Seizure by a Private Entity

Today we will discuss the continuing financial mess and in particular the AIG “bail out”.  We will start out with a lie that has NOTHING to do with the financial market to simply demonstrate how lies often “hide” in plain sight of anyone who bothers to look at them even casually.

Tune in today to learn,

  • One of the biggest lies of the medical industry and how it shows us that a lie is best hidden in plain sight
  • Why “the government” didn’t bail out AIG, but how taxpayers are funding the buy out
  • How the Federal Reserve (a private company) now owns AIG, Freddie Mac and Fannie Mae, not the American people as we are led to believe
  • Who will be next?  Wamu, Goldman Sachs, Citibank, who?  Perhaps many?
  • The fallacy of FAS 157 and why financial assets are still not “marked to market”
  • How the tin foil hat brigade is, at certain times, spot on
  • Why the big foot to drop will be unsecured debt – 1 Trillion in toxic debt - That will never be repaid

Resources and Links for Today’s Show

  • Which US Bank Will Fail Next? – Specifically note the quote by Gerald Cassidy, – “If you were to truly mark them to market, the decline in value could be too large for them to be able to digest without raising equity capital.” – Clearly FAS 157 is not being followed as claimed.
  • Is Washington Mutual Going to be the Next Bank to Fail? – Note the facts on bad debt and adjustable rate mortgages along with a salary and bonus package of 20 Million Alan Fishman the new Chief Executive of WAMU.
  • Washington Mutual Hobbled By Increasing Defaults on Option ARMs –  Note facts from today’s show in this article, “Four percent of Washington Mutual’s option ARM portfolio probably will reset in the second half of this year and 13 percent, or $7.1 billion, will reset in 2009, according to the SEC filing”.  Also note this quote, “About 83 percent of the option ARMs issued from 2004 to 2007 were underwritten without full documentation of borrowers’ incomes, Fitch said.”
  • US Bancorp bad-loan cost may rise 25-28% – Note the confidence of this quote, ‘”Until we see loan losses absolutely going down, with certainty in more than one quarter, we’re going to continue to build our loan-loss provision — you should want us to do that,” Davis said’. – Is that confidence warranted, honestly I don’t know.

Remember to comment, chime in and tell us your thoughts, this podcast is one man’s opinion, not a lecture or sermon. Also please enter our listener appreciation contest and help spread the word about our show.

6 Responses to Episode-56- Lies in Plain Sight – AIG Buyout is Seizure by a Private Entity

  1. Nice show Jack,
    I can tell you are passionate about these issues. Better check that blood pressure of yours.

    I never thought about the longevity issue before. However I can remember talking to my Grandparents about their parents and grandparents and you know what? They lived in their 70′- 90’s as well.

    AIG… WTF, I’m getting tired of this
    “bailout”/”loan” trend that the Fed is doing.

  2. I was wondering since yesterday about what kind of bomb you were going to drop. Nice cliffhanger! :) Not disappointed at all, not like I ever am about any of these podcasts.

    Some of the things you talked about in the previous podcast I knew, but I never thought about longevity back during the Revolutionary War and today. Being in healthcare, I can see how that little lie really sets up the entire community of healthcare, and the community as a whole. Seems like our government likes to play with numbers to their advantage as does the Federal Reserve.

    I am glad that I had some of the social studies teacher that I did. Many of them talked about some of this, but most of us were not listening. The media being the mouthpiece of the government and the ones controlling the government, and their disinformation goes a long way to propagating these lies.

    Also, hearing you talk about these things, there seems to be a pattern. A pattern of depression and collapse, and then economic stability. At least, that is how I am seeing it. The way I see it we are heading to a depression. The big pink elephant in the room that no one wants to talk about or look at.

    Your podcasts are VERY informative. Thanks for all the research you put into this. Thanks to you I am more aware of what is going on in government, business, and such.

  3. Modern Survival

    @Eliot,

    Well I elevated it a bit intentionally to make it more entertaining but when I listened to it today, wow, yea it was pretty heated. I just hate bullshit lies and they get me pissed.

    @Coldhaven,

    Some teachers did indeed teach these things. I was a crappy student, lazy and to smart for my own good. But I was fascinated by history and science so even though I did not do a lot of the work in those classes I did pay attention. Those very few teachers that were honest are a big part of why I am who I am today. Despite my dislike/distrust for public education there are some good teachers out there, I was lucky to find a few.

    You know what they say, “when the student is ready, the teacher appears”

  4. Jack,
    Great show. Spot on as ususal.

    Tell me, do you think there is any real chance of the people of this country waking up and doing something to fix these problems before its too late? I’m ready for whatever may come, but honestly, my heart breaks for the country that I love and call home, and I wish there was something that could be done to save her. What are your thoughts on an economic revolution?

    Thanks
    Joe

  5. Modern Survival

    I don’t know, the history of crisis is the people panic and yield to even more control. This goes on and on until a breaking point is reached.

    I fear for my nation that the people will in time beg for the last vestiges of liberty to be taken from them and yield it with out a fight, in fact they will demand it.

    It may not be until they try to force something as radical as implanted RFID chips on us before the revolt comes. I am a peaceful man and do not ever want to “take up arms” but I tell you that is one of the things that would do it for me.

    I really hope people will realize the truth and take the nation back but the odds are long. I hope my show becomes part of a peaceful revolution and really pray that it will indeed be peaceful. Yet who really knows? History has shown that few tyrants ever yield to popular will and opinion and that society usually waits until peaceful means of change are no longer possible.

  6. Pingback: Episode-106- A Call to Arms, Time for a Revolution | The Survival Podcast