It’s no secret that we are in the midst of an economic crisis that can only be matched by one or two similar cycles of economic turmoil, yet in those previous economic downturns, the government failed to spend trillions of American taxpayer money to bail out the foreign banks. and national societies. The Government is printing trillions of dollars in an attempt to fix the current economic crisis, which will eventually lead to the devaluation of the dollar against world currencies making the situation worse.
In the modern era, the US dollar is not backed by the gold standard as it was for the first two hundred years of this country’s existence. In today’s market, the dollar is just a piece of paper and traders decide its value day after day. What makes our current situation so terrifying is that our current Government is printing and spending trillions of dollars to bail out foreign banks and financial institutions.
American International Group (AIG) is a perfect example to illustrate why the United States is heading down a very slippery slope in bailing out foreign banks. If you didn’t already know, the United States government has given AIG $173 billion dollars in bailout money. AIG reported the largest quarterly loss in US history last quarter at $61 billion. The United States government just gave them another $30 billion last week. The scariest thing is that no one knows where all the $173 billion ended up. The Wall Street Journal recently compiled a list of several banks, domestic and foreign, that have received at least $50 billion of the $173 billion given to AIG by the US government. It is inconceivable that in the current economic climate with record foreclosures, the US government would hand out such large amounts without accurate accounting to ensure that every penny is used properly.
AIG’s Downfall: AIG was heavily exposed to toxic assets, seen as the root cause of the credit crunch through its London-based financial products unit, which guaranteed hundreds of billions of dollars in loan instruments. “They have written a large amount of insurance coverage on default swaps for financial institutions around the world,” a market source told Reuters on Friday. So, in essence, the US government is bailing out the foreign banks that hired AIG to insure the toxic assets on their books. In a simple sense, you and I are paying for their mistakes.
When times were good and these FAT BANKERS were paying themselves multi-million dollar bonuses, everything was rosy. Now that their ponzi scheme has collapsed, the US taxpayers are left with the bag by bailing out these foreign banks.
At least two dozen US and European banks have benefited from the AIG bailout, with roughly $50 billion paid out since the Federal Reserve first provided aid to the insurance giant, the Wall Street Journal reported Saturday.
Here is a list of the banks, domestic and foreign, that have received large sums of money from United States taxpayers to bail out foreign banks through AIG:
Goldman Sachs – received $6 billion
Deutsche Bank: received $6 billion
Societe Generale – Received $4.8 billion
Calyon: received $1.8 billion
Barclays – Undisclosed
Rabobank – Undisclosed
Danske – Undisclosed
HSBC – Undisclosed
Royal Bank of Scotland – Undisclosed
Banco Santander-Undisclosed
Morgan Stanley-Undisclosed
Wachovia-Undisclosed
Bank of America – Undisclosed
Lloyds Banking Group – Undisclosed
I find it interesting that Goldman Sachs was one of the biggest beneficiaries of the money that American taxpayers gave to AIG to bail out foreign banks. Our current Secretary of the Treasury, Henry Paulson, a former CEO of Goldman Sachs, has a net worth of over $700 million dollars and, no doubt, still owns millions of Goldman Sachs shares. He Oversaw a personal bailout for himself at the expense of US taxpayer money that was supposed to be used to bail out foreign banks? The rest of the foreign banks will not disclose the amount received from AIG that came from US taxpayers, but with increasing political pressure, that door will open any day and we will all get a glimpse of how the FAT BANKERS have taken over the world as hostage. when the “secret” is shattered.
For the most part, the banks listed in this article have put the world economy into its current mode of major collapse. They did this knowingly by issuing guidelines for loans that were risky, toxic, and in most cases they knew would go wrong. They hoped that real estate prices would continue to rise so that the borrower could continue to refinance these toxic loans into other loans that would continue to line their FAT CAT BANKER pockets.
If you are in a difficult situation with your current loan, or have a loan that you think was deceitful, there is hope. There are federal and state statutes on the books to protect American consumers from deceptive credit practices. The penalties for violating these laws are very severe and can result in your mortgage payment being reduced by hundreds of dollars per month, can reduce the principal amount of your loan by hundreds of thousands of dollars and, if the violations are sufficiently serious, you can even be awarded monetary damages for violations of these federal and state statutes.
If the United States government is going to take taxpayer money and bail out foreign banks and the rest of the world, I strongly believe that if you have been taken advantage of by a broker, lender or bank, you should explore all your options. You will be surprised at the options available to you. The players in the mortgage game in America committed so much fraud and violated so many Federal and State Rules and Regulations, there is a very high chance that you could qualify for significant relief and get something back for the wasted taxpayer money you is being sent abroad to bail out foreign banks and institutions.