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"AIG will also give the U.S. Federal Reserve a preferred interest in its American Life Insurance Co (Alico), which generates more than half of its revenue from Japan, and Hong Kong-based life insurance group American International Assurance Co (AIA) in return for reducing its debt, they said."
The Federal Reserve does not have the legal authority to take ownership stakes in anything.
This is what we get for not raising unholy hell when Bear Stearns' "Maiden Lane" was put in place, or when AIG's CDOs and CDS were taken by The Fed.
Now we're rising to open and flagrant flouting of the law.
The Fed, for those who are uninformed, is empowered to loan (under unusual and exigent circumstances) anyone money against collateral.
However, they are not empowered to own anything except debt instruments backed by the full faith and credit of the United States Federal Government.
That they would take an equity stake in a firm based in Hong Kong is beyond outrageous.
Folks, there is no reason whatsoever to believe that our financial system or capital markets will stabilize until "The Bezzle" is forced from our markets.
Make no mistake - it will be forced out.
The only question that remains is whether it will be forced out as a consequence of regulatory action or mass bankruptcy, with unemployment reaching 30% and possibly beyond, 20% of the S&P 500 bankrupt and the SPX trading at 210.
We are headed directly to at least the mid 400s on the S&P and 4,000 on the DOW unless this idiocy is stopped here and now, and I have absolutely no belief that our government has any interest whatsoever in stopping it.
Welcome to the Greater Depression.
Originally posted by Hx3_1963
now isn't HBSC linked to BofA & Citi also??
Originally posted by elston
Bloomberg ticker has the Nekkei at +110 yet two minutes ago it was down arounds -242. Bloomberg refreshes fastest for me, what other simple ticker can I get? I have two customers who trade in asian markets, I bet they are definately in front of their 12 monitors each right now.
Affects on open tomorrow? Could we see mid 6's?
Originally posted by David9176
reply to post by redhatty
How long do u think it's going to take for the dow/s&p to tank? Do you think it will be a slow ordeal? Or a big drop?
David, my friend, WHERE HAVE YOU BEEN? We have been in a slow ordeal for the last year.