Brain
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Joined: 2/14/2007
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Some people might say this is redundant or parts of this are redundant and I say that may be true but as Richard Nixon would say, “ Let me make this perfectly clear.” I am not pleased with Goldman Sachs and that company's connections to the Democratic Party. Their connections to the Republican Party go without saying.
Taxpayer dollars were used by Goldman Sachs to pay millions of dollars in bonuses.
Taxpayer dollars kept AIG solvent in order to pay off Goldman Sachs bad gambling debts, which were insured by AIG.
The money used to pay bonuses was not business income Goldman Sachs earned but rather it was taxpayer money that paid the bonuses. And the money used to repay the government was not business income but was also taxpayer money. It came from the money given to AIG, which AIG used to repay Goldman Sachs.
This is important because people wrongly believe Goldman paid the loan back with business income or profits and they did not. This misconception needs to be reported with more emphasis by the media, which has largely ignored the matter. The fact is Goldman Sachs paid taxpayers back with taxpayer money. The money was not business income: Taxpayer money loaned to Goldman was paid back; again I will say it, with taxpayer money. How? AIG received taxpayer money/help and then AIG gave it to Goldman Sachs because of the credit default swap contract.
AIG insured those mortgages if they defaulted and default they did.
I have read people here on these threads say all this nonsense about how Goldman paid the money back. Goldman Sachs did not pay back a dime except with taxpayer money. And that's why I started this thread. Credit default swaps and derivatives are complicated to understand. It's hard for me to understand what happened and I have a degree in economics.
Goldman Sachs used taxpayer money to pay bonuses to their employees and repay the debt to the government. The debt was repaid but not with business income, Goldman used the taxpayer money they got from AIG. This is a clever and good example of corporate welfare. They want corporate welfare for Wall Street and free enterprise right wing capitalism for Main Street;
Barofsky nailed it.
Geithner Singled Out In TARP Watchdog Neil Barofsky's Scathing Report On AIG Bailout
A brutal report issued Monday by a government watchdog holds Timothy Geithner -- then the head of the Federal Reserve Bank of New York and now the nation's Treasury Secretary -- responsible for overpayments that put billions of extra tax dollars in the coffers of major Wall Street firms, most notably Goldman Sachs.
Instead of bargaining with AIG's numerous counterparties to resolve its billions of dollars in souring derivatives contracts, Geithner's team ended up paying top dollar for toxic assets -- "an amount far above their market value at the time," the report notes.
http://www.huffingtonpost.com/2009/11/16/aig-bailout-government-ov_n_359919.html
Bailed-Out AIG Forcing Poor to Choose Between Running Water and Food | Corporate Accountability and WorkPlace | AlterNet
What are we getting in return for the bailout? So far, predatory credit card rates, exorbitant bank fees and obscene Wall Street bonuses. But we're being robbed in other, sneakier ways, too. It seems that taxpayers in the poorest, most vulnerable parts of the county are getting plundered by the same institutions they bailed out. One example is AIG's underhanded fleecing of residents of rural Kentucky.
http://www.alternet.org/workplace/144203/bailed-out_aig_forcing_poor_to_choose_between_running_water_and_food?page=1
Government by Goldman Sachs
Scam central
http://www.brasschecktv.com/page/674.html
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Geithner Singled Out In TARP Watchdog Neil Barofsky's S... - 
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