How come people are not raising red flags over the federal reserve takeover of AIG?

[RC45]

Originally Posted by Mattk ^Well, saying 'let the market work it out' also relies on the business sector to fix itself. No real difference. The Federal Reserve was created to fix things up. Perhaps it's a good idea to let them do their job.

The business sector "fixing itself" is rather different to the federal reserve and other central banks interfering the way they have in the last 2 days. The one method is the market deciding the outcome and the other is kneejerk manipulations hoping to influence the market.

History (here we are again at history being an actual teacher ) has shown that markey manipulation attempts dont work.

[79TA]

Originally Posted by 04RCSTI If you have stocks, please stop freaking out. Fear is driving the market, not reason. There are definitely bargain opportunities out there, but be careful because there's too much volatility. If you buy something, hold on to your balls because its going to be a bumpy ride.

I'm sure the last few days have made all sorts of headaches for you guys. For me, it's created some ridiculously good opportunities. When it doubles sell half? The moves have been too fast for that so it's been more of a when it quintuples sell a fifth kind of deal. But yea, it's been mad. (I trade options, not stocks btw)

[nthfinity]

Originally Posted by styla21 Maybe you guys can answer this question; Gray, i'm interested to hear your response in particular. The U.S. dollar: It's continually strengthening across world markets, but why? Is there some sort of good news about the U.S. economy I've missed? Is the U.S. tax code suddenly more capital friendly? Are national levels of wages and household incomes rising? Is the labor force suddenly more focused on producing goods that the world wants to buy by the boatload? Are government expenditures suddenly under control? Really, where's the good news? For two months now the dollar has been strengthening.. I must be missing something. Also, the U.S. government just seized Fannie and Freddie. Don't these firms count as major banks, what with their $5 trillion and more of liabilities? They're both too big to fail, yet too big to bail. Really does anyone have a spare $5 trillion lying around? The US Fed, (Mattk) is socializing the financial side of the US housing market. That is a disastrous move, that doesn't stablise the markets. It gets everyone high, has a good trip for a few hours, then comes crashing down.

currencies, like commodities, are traded only partially on reality. the rest of the price is made up by the perception of future reality by the players in the game. right now the dollar will continue to gain steadily, and perhaps far faster than expected, simply because the usa story is now less bad than the european or asian stories. the usa economy doesnt need to be great, and some of you have rightly pointed out that it is actually poor (i agree), but europe is just now dropping into the abyss, with far fewer tools or a plan to get itself back out. same story with japan and maybe china/india. add a few events like georgia, and gdp drop in germany france and italy, and pretty soon the dollar actually looks good - on a relative basis. but a relative basis is all forex ever is.

[nthfinity]

Bad loans all around are being covered by the Taxpayer now.

Does this mean people are going to move back into their foreclosed homes?

Does this mean that the bank still "owns" them, and when the homes sell, that will help pay off the Gov. loans?

[graywolf624]

The moment short selling rules changed, did you notice the flood of people trying to cover their assess today? Full disclosure of short selling and BAM stocks up 15% in a matter of half an hour.

Mutual funds already are required to have full disclosure of their short positions. Your confusing them with hedge funds.

Also, it is not as if the Federal Reserve is buying AIG.

Go read more on the deal.. In addition to the loan the federal reserve acquired an 80 percent stake in AIG as part of the terms


[quote]

You can take it like a man or delay the inevitable? That's the kind of bullshit that drove the market down 450 points yesterday. You should work for CNBC. It may be coming, but don't you think we should try and minimize the effects?

Your showing you have little understanding of economics. Read some Friedman for crying out loud. Interfereing with the economy is a losing porposition. ITs going to go where it wants to go. Even more then that, by giving moeny you havent fixed the issues that caused AIG to crash. Which means more then likely.. Theyll crash again!

^Well, saying 'let the market work it out' also relies on the business sector to fix itself. No real difference. The Federal Reserve was created to fix things up. Perhaps it's a good idea to let them do their job.

Wrong again.. No where in the federal reserves mission statement is to revive the economy. Their one.. and only.. appointed task is to guard against inflation. Thats all. The fact that they've forgot that has mostly caused the scale of this mess. Let the market work it out, means just that. Put in better regulations around the loop wholes.. And wait.

[graywolf624]

The U.S. dollar: It's continually strengthening across world markets, but why? Is there some sort of good news about the U.S. economy I've missed? Is the U.S. tax code suddenly more capital friendly? Are national levels of wages and household incomes rising? Is the labor force suddenly more focused on producing goods that the world wants to buy by the boatload? Are government expenditures suddenly under control? Really, where's the good news? For two months now the dollar has been strengthening.. I must be missing something.

Nth hit the nail on the head:

While our economy is hurting, its actually still better off then everyone else. Investments go to safehavens in time of crisis. While US banks are in crisis, so is the rest of the world. US investments as a whole are still much safer then their european and asian counterparts.

Also as he stated the value of our currency is pegged to future expectations. The market expects us to turn it around.

[Jona]

We've had this exact same situation in Finland in the early '90's. Just wait and see what happens, it is not going to be nice.

[pagani]

Originally Posted by RC45 The business sector "fixing itself" is rather different to the federal reserve and other central banks interfering the way they have in the last 2 days. The one method is the market deciding the outcome and the other is kneejerk manipulations hoping to influence the market. History (here we are again at history being an actual teacher ) has shown that markey manipulation attempts dont work.

The federal reserve is a private bank
Check this out
http://video.google.nl/videoplay?doc...ederal+reserve

[10000rpmlover]

thank you for the phenomenon video, I think not many people actualy knew that the federal reserve is a private bank owned by the richest men in the united states, Allan Greenspan and Paul Wolfowitz being the ring leaders with Bastards like the Jensen family (JVC, RCA, Westinghouse) and the Bilderbergs comprising of Rockefellers, Morgan, Chase, Rothchilds, Ellis... these people basically own this country, they will never need to do anything except keep the system the way it is

I hate the federal reserve, I hate income tax and I hate the fact that no one would stand up to them and the IRS (which is not even a legal government agency, but a collection branch of the federal reserve)

call it conspiracy, call it what you want, just tell people about it, I have a friend who has never filed an income tax in his life, owns his own paint and body shop for the past 25 years and the IRS will never bother him again after he took them to court 10 years ago and won, I wish I could do the same

now back on topic, I watched Lou Dobbs Moneyline on TV today and he mentioned the FEDRES as instituting the next great depression and acting against the constitution, AIG will not be the only one, GM maybe next and quite frankly, it is over after that

PS- the fact that Brother Cavil hosts that show, will forever give me the creeps, He's a cylon I tell Ya!!

[pagani]

Originally Posted by 10000rpmlover thank you for the phenomenon video, I think not many people actualy knew that the federal reserve is a private bank owned by the richest men in the united states, Allan Greenspan and Paul Wolfowitz being the ring leaders with Bastards like the Jensen family (JVC, RCA, Westinghouse) and the Bilderbergs comprising of Rockefellers, Morgan, Chase, Rothchilds, Ellis... these people basically own this country, they will never need to do anything except keep the system the way it is I hate the federal reserve, I hate income tax and I hate the fact that no one would stand up to them and the IRS (which is not even a legal government agency, but a collection branch of the federal reserve) call it conspiracy, call it what you want, just tell people about it, I have a friend who has never filed an income tax in his life, owns his own paint and body shop for the past 25 years and the IRS will never bother him again after he took them to court 10 years ago and won, I wish I could do the same now back on topic, I watched Lou Dobbs Moneyline on TV today and he mentioned the FEDRES as instituting the next great depression and acting against the constitution, AIG will not be the only one, GM maybe next and quite frankly, it is over after that PS- the fact that Brother Cavil hosts that show, will forever give me the creeps, He's a cylon I tell Ya!!

The new world wants to destroy the usa Economy

[mayer]

Greenspan takng over the world? He's not even the chairman anymore. Sure, he's part of the reason this whole mess came to being, but it's Helicopter Ben and Bazooka Paulson who are exacerabating the problem.

Ditto with nth and graywolf on why the dollar is rallying. Ditto on the responsibility and supposed mission of the Fed, graywolf. It's also funny how Fannie and Freddie are counter productive to their mission statement.

nth, I like Ron Paul but I'm not crazy, at least I don't think so.

79TA, congrats on the long puts (I'm assuming). I was about to do the same with some near-the-money puts on LEH, but chickened out. No guts, no glory. Still banging my head everyday. The options market should be interesting in the coming day. The spreads are getting absolutely HUGE like with WM. Talk about unintended side effects. ProShares ETF? Orders to create new shares have been halted, wonder how that one will play out.

You guys should be worried about this:

Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

http://calculatedrisk.blogspot.com/2...-proposal.html
http://www.nytimes.com/2008/09/21/bu...ss&oref=slogin

[ae86_16v]

Yeah, you know what is so funny, that this has always proclaim to be the best market economy every and that minimal Government is always the best, because the markets will regulate themselves.

But guess what, now that the derivative markets (ABS, CDO, CDS) are all crashing, it is those exact same people that are asking for government bail out and help. It is those exact same people that are turning their backs on Friedman and Hayek.

That's what happens when you make bad investments, such as loaning money to people that have no ways or means of repaying. But it is okay since our socialist government is here. Just print more T-bills. Backed by the full faith and credit of the United States. <sarcasm> Sounds a like like Road to Serfdom to me.

Seriously, the Fed needs to focus on fighting inflation, that should be their only mission.

[nthfinity]

Originally Posted by mayer G nth, I like Ron Paul but I'm not crazy, at least I don't think so.

Making sweeping statements about Ron Paul supporters isn't accurate. But, there are plenty of crazies around and following him

[nthfinity]

http://www.bloomberg.com/apps/news?p...efer=worldwide

Pelosi and Kerry loose quite a bit of "their" company, AIG...

[RC45]

One has to wonder how many of these bastards sold before the insider bailout deals were struck - you KNOW there was insider info being shared and blatant illegal trades being made.