What a bombshell! Now we know the fix was in, Treasury did not even bother to offer a discount to AIG’s counter-parties. So it was a de facto bailout of Goldman Sachs among other firms and foreign banks visa-vi the U.S. taxpayer. What is even better about this bailout is that is didn’t fall under TARP restrictions, didn’t need to be paid back and Goldman will be paying huge bonuses this year with the taxpayers money.
Also, unlike the commercial banks, I doubt we would of went over the edge if they failed. Yes, investment banks are important and they make markets but we would of been able to survive without bailing them out. That’s capitalism, winner succeed and losers fail. I think Mr. Geithner will have some explaining to do if not having to resign over the fallout.
Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein testified that he was never asked by U.S. regulators to accept a discount on investment contracts his firm had with American International Group Inc.
Here is a FAQ on CNN Money about the Cash for Clunkers government program to get inefficient fueled vehicles off the roads. This does not sound like the most efficient use of taxpayer money but it has been approved so you might as well get some facts if your in the market for a new car purchase.
Cash for Clunkers FAQ (CNN Money):
The federal government’s new Cash for Clunkers program has caused a lot of excitement for consumers. It’s also caused plenty of confusion.
Buying a new car is a major financial commitment and you don’t want to get so carried away playing the Clunkers game that you lose sight of other big financial benefits you could stand to gain, with or without the government’s incentive.
Clunkers: Do I qualify?
Surprise, surprise. Who would of thought that we would give more bailout money to GMAC (sarcasm)? Looks like GMAC needs another $7.5 billion in our hard earned tax dollars to provide low cost (or no cost) financing for more American made cars that people don’t want to buy.
If we are going to support our native automotive industry, it would be nice if we made them make cars and trucks are more viable in our current economic environment. What is even more interesting in this press release, is that our Treasury Secretary said that he thinks GMAC will need even more bailout in the future and he has determined we are ready to give it as needed…..period.
Please bring your attention to the FACT that they will be purchasing assets from pensions and endowments with this $5.5 billion dollars. I would like to know if all the money came from private investors or company funds. First off, Goldman Sachs did take TARP bailout money so it makes me wonder if this is a hidden bailout for the pensions and endowments that were either steered or willing invested in pretty shady financial vehicles.
Or, is this what is to come, with the U.S. taxpayer bailing out all these banks, now they have this huge advantage by getting fresh cash from the Fed & Treasury because asset prices are so depressed. I would like to know more about what assets these funds are offloading. Something does not smell right here.
Goldman Sachs Group Inc. raised a fund with about $5.5 billion in capital commitments to buy private-equity assets on the secondary market from endowments and pensions that have been stung by losses.
Well I hope he will be able to keep his word on that. I think right now if all the loans were reigned in right now we would have a full collapse and I am not sure how we are going to write-off all these losses and still keep these banks in business?
Federal Reserve Chairman Ben Bernanke on Friday said the Fed’s buying of longer-dated U.S. Treasuries would “taper off” when the economy no longer needed help, allowing the Fed to cease its emergency support.