Loading ...After reading AIG’s 10-K report last night, I realized that I had unknowing stumbled into the largest ponze scheme in all previous human history. This ponze scheme makes Bernie Madoff’s crime as small as Bill Clintons cum stain on Monica Lewinsky’s blue dress. This has the potential of being 10 times the size of the US housing bubble, no wait, even larger. So what is this crime you ask, I’ll tell you?
It is subprime, no doc, and fraudulent lending to sovereign nations. Envision whole countries borrowing billions and trillions of dollars without having any ability or plan to pay it back. Greece is just the top of the iceberg of this recent, current and ongoing unethical lending behavior by some of the banksters. How can the same people that brought us the housing bubble which resulted in over 6 million unemployed Americans, millions losing their homes and hundreds of suicides be willing to risk even more misery unto the world? Greed has no boundary when considering your neighbors need.
From the AIG 10-K report Item 1A risk factors, “Many of these risks are interrelated and occur under similar business and economic conditions, and the occurrence of certain of them may in turn cause the emergence, or exacerbate the effect, of others. Such a combination could materially increase the severity of the impact on AIG. As a result, should certain of these risks emerge, AIG may need additional support from the U.S. government.” Okay, this sure doesn’t sound good…what the hell are they talking about besides needing more money from the government? “AIG has a highly leveraged capital structure and has significant preferred stock outstanding.” I see, so they have way more liability than they have the capital to back up these liabilities, but how much? “As of December 31, 2009, AIG had approximately $141.5 billion of consolidated indebtedness, including $23.4 billion and $4.7 billion outstanding under the FRBNY Credit Facility (all of which is secured indebtedness) and the FRBNY Commercial Paper Funding Facility (CPFF), respectively. In addition, as of the same date, AIG had $41.6 billion and $5.3 billion aggregate liquidation preference of AIG Series E Preferred Stock and AIG Series F Preferred Stock, respectively. The market capitalization of the AIG Common Stock was $4.0 billion as of December 31, 2009 and $3.6 billion at February 17, 2010.” Holy shit, you mean to tell me that AIG trading at 24.70 a share only equals 2.8% ish of actual liability, what else is in here? “A deterioration in the credit markets may cause AIG to recognize unrealized market valuation losses in AIGFP’s regulatory capital super senior credit default swap portfolio in future periods which could have a material adverse effect on AIG’s consolidated financial condition or consolidated results of operations.” Credit default swaps, I smell Goldman Sachs! How much is these fraudulent financial instruments have they insured? “A total of $150.0 billion in net notional amount of the super senior credit default swap (CDS) portfolio of AIGFP as of December 31, 2009, represented derivatives written for financial institutions, principally in Europe, which AIG understands to have been originally written primarily for the purpose of providing regulatory capital relief rather than for arbitrage purposes. The net fair value of the net derivative asset for these CDS transactions was $116 million at December 31, 2009.” Wow, I am near speechless….
So let me see if I can connect the dots. GS helps Greece (and possibly other Euro nations) to commit fraud on their balance sheets to qualify for the Euro. So they find financial institutes that are willing to lend Greece the cash necessary to have the right cash to debt ratios without putting these new debts into the Euro statements. AIG is than foolish or fraudulent enough to ensure this debt and credit default swaps. Goldman Sachs than collects a huge fee for developing and executing the fraud with Greece. But who were these lenders, was it Goldman Sachs themselves or other banksters that actually put up the capital? That does matter! Yet, just like before, Goldman Sachs plans to have the US government bailout AIG and therefore making all those involved in the fraud filthy rich. And the original lenders who have not been disclosed will get their money back plus interest.
American people need to wake up! I have a better idea how to fix our corrupt system. AIG MUST declare bankruptcy and not receive an additional dime from the government. All those that participated in the fraud MUST be held accountable for their actions. A global court needs to be created to punish crimes involving multiple countries and multinational corporations. This has gone too far already. Hope the politicians wake up and start governing with the peoples best interest at heart.
http://www.nytimes.com/2010/02/25/business/global/25swaps.html
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