AIG, "I'll have a double please." US Spineless Treasury, "OK"

Un-believable? I don't think so. AIG has gone from an $80 billion government bailout to a $150 billion government bail out in less than 45 days.

I have said it a million times and I will say it again. The government CANNOT BAIL OUT THE MESS WALL STREET HAS CREATED. THEY DO NOT HAVE THE RESOURCES AND SHOULD NOT TRY.

The AIG scenario was to be expected. Where is this money going? This is what is quoted in the Bloomberg article today.

...The expanded aid to AIG may help stabilize companies that depend on AIG to protect them against debt-market losses....

Well big F***ing deal. There is nothing in these black market insurance products that says the company that sold them to you has not been run by a bunch of complete idiots and may go bankrupt one day. If you bought "debt insurance" from an insurance company (or any fool that sold this stuff on worthless debt for a quick buck) that goes bankrupt and cannot "pay out" in case of a default on the debt you purchased thinking it was OK to purchase the shit as long as you could buy "protection" against default, tough luck. Your insurance company just went out of business so you can do one of two things, keep your debt and hope it all does not default (since there is no market for it), or find some other sucker stupid enough to sell you insurance on your worthless debt.

I just don't get it. We are giving money to AIG so they can give money to their "customers" to meet their request for additional collateral on an unregulated product sold to unregulated market participants. We the TAXPAYERS who have no reason to bail out anyone in this mess. Let the damn thing implode. Force the "parties" who bought and sold this stuff to work out deals to close out the paper and move on.

This is absolutely pissing me off. First Fannie and Freddie were bought so the government could "narrow the spread on the cost of borrowing and thus the mortgage rates to home buyers" by a whopping 3/8 to .5%. Well what happened? The rate dropped about .40 percent about 2 weeks after the deal and now sits about 5/8% HIGHER than rates were BEFORE the stupid bailout. That is a swing of over 1% to the upside in mortgage rates from their short lived drop after the bailout.

What is the verdict? FAILURE, failure, FAILURE.

Paulson, you are a complete fool and Bernanke should go back to whatever university he taught at and crunch numbers some more because he has no decent knowledge of the markets and no street sense.

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