Now, let us see the facts today:
$ 512 Billions – Already written off by banks and brokers
$ 59 Billions – Given to Bear Stearns and JP Morgan combine
$ 200 Billions – given recently to Fannie Mae and Freddie Mac
$ 85 Billions – given to AIG as capital
$ 2,400 Billions – Needed by Fannie Mae and Freddie Mae
$ 1,300 Billions – Needed by AIG for future provisions
$ 700 Billions – Requested by Paulson – Bernanke for immediate need for Buying Bad debts
$ 400 Billions – Requested by Paulson – Bernanke for funding Money Market Fund Brokers
$ 5,656 Billions – TOTAL
$ 600 Billions – Losses of Lehman Brothers not yet written off
$ 6,156 Billions – Updated Total
Even if you ignore the future obligations of AIG and Fannie Mae/Freddie Mae, the amount comes to staggering 2,456 Billions or 2.4 Trillions.
Failure of Morgan Stanley – Goldman Sac and making them Banks
Looks good news – both MS and GS have become banks. And why did they become banks overnight? Because their take over by Wachovia, Chinese Banks etc broke down. No one wanted to buy MS or GS, and they would have become bankrupt this week. By giving them status of bank, their status changed overnight. They know nothing about commercial banking. The license to become a bank, which usually takes over 6 months, was given in 24 hours. Mr. Paulson is now portrayed as “savior of America”
Where was Paulson only 10 days back when Lehman Brothers and Merrill failed?
Paulson is an ex-Goldman Sac guy. He was the President and obviously has lot of stock holding in that firm, directly or indirectly. He did not want competitors to Goldman, so he allowed the demise of Bear Stearns, then Lehman Brothers and then crucified Merrill Lynch by forcing them to merge with Bank of America.
Now that field was clear, he permitted Morgan Stanley and Goldman Sachs to become banks. He destroyed the whole economic fabrics of United States of America. He knows that most of the bad assets have ZERO value, and yet he portrays that the value is still 80% (only 20% loss – if that was so, any one can afford). Against this valuation, he wants FED to pay 65% (discount of 35%) to all holders of Bad Debts, prominent of whom are Goldman Sachs, Morgan Stanley (to lesser extent) and other banks. He is going to write the check for $ 700 Billions with no questions asked. So he will buy those trash assets and dump them into FED Trash House. He will save the Goldman Sac, destroy all other brokers, and he will be the most powerful KUBER in the world with power to print as much as $ 1.3 trillions of dollars in just under 3 months and distribute them to anyone he likes.
President Bush is a man with retarded intelligence. He is exhorting Congress to approve the package to buy trash assets, whereas almost all local governments of 50 odd states are clamoring for $ 200 billions collectively, which is denied to them. He spent $ 500 billions in Iraq and murdered 1 million Iraqis in addition to killing over 5000 Americans in Iraq and Afghanistan, and now he wants Congress to approve $ 1.3 trillions in less than 7 days. The Americans blindly support their leaders – they are Intelligent Idiots. They have no idea what their leaders are doing and how their and future generations lives are destroyed.
Bernanke has become a Gate keeper for Paulson. He opens the gate to the treasury to the person nominated or permitted by Paulson. He also signs and delivers the tons of dollars to anyone coming to him with Warehouse Delivery Order duly signed by Paulson. These three musketeers – Bush, Bernanke and Paulson have virtually gone berserk. They are the most powerful people in the world today with virtually no accountability. Democracy in America is ruined by them.
Arnold Schwarzenegger, Governor of California and very sincere worker, is refusing to travel out of capital even for a campaign; unless his budget, deficient for a few billions, is passed by the Democrats dominated Congress. He has virtually imprisoned himself to ensure that his state does not suffer. He is not getting $ for his genuine needs. Various state/Municipalities are borrowing from the market @ 10% to 20% whereas FED rate is just 2%.