Faber now reporting a bridge loan for AIG.

WTF???

Gvt back in forcing banks to play.

 

From the web site of WSJ:

Breaking News:

The Fed is considering offering a secured bridge loan to AIG, and under the proposed rescue plan, the U.S. government may end up controlling the firm, according to a person familiar with the matter.

 

secured by WHAT?

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The Govt. would get warrants for most of AIG's equity.

 

rock solid.

 

Gotta say that Luskin guy is a loon.

 

85-90 billion more in taxpayer revenue. the gov't equivalent to dine and dash... how will they spin this one?

now the government is literally the largest players in the housing business (6trillion), banking business (few trillion?), insurance business (85-90 billion for now). By next weekend the auto industry teet will be getting suckled. Warren buffet is small potatoes next to this portfolio of businesses the gov't is amassing.

 

if true this is big - and tomorrow is going to be wild....

 

So much for Paulson being reluctant to facilitating a "bail-out".

Was a $20 billion liquidity issue, now it's an $85 billion dollar capital problem because of 3 successive downgrades.

 

So the Gov't has control of the mortgage industry via FNM/FRE, they will soon control the Health Care Industry, and now they will own the Insurance industry. It's getting more like Russia every single day.