Robert Winner

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The Fed created 3 LLCs under the title Maiden Lanes Transactions to administer Stimulus's. Is this the governments job?

Maiden Lane Transactions refers to three limited liability companies created by the Federal Reserve Bank of New York in 2008 as a financial vehicle to facilitate transactions involving three entities: the former Bear Stearns company as the first entity, the lending division of the former American International Group (AIG) as the second, and the former AIG's credit default swap division as the third.

Maiden Lane was organized as Delaware Limited Liability Company on April 29, 2008, and registered to do business as a foreign limited liability company in the state of New York on June 26, 2008. The registered agent of Maiden Lane LLC is the CT Corporation.

The U.S. Federal Government's total investment in the AIG bailout, including both Maiden Lane II and III and actions by the U.S. Treasury, was $182 billion.

Maiden Lane II used billions in bailout money to purchase toxic assets, and that AIG used billions to pay other banks, including foreign banks--France's Societe Generale at $11.9 billion, Germany's Deutsche Bank at $11.8 billion, and Britain's Barclays PLC at $8.5 billion. AIG, through this fund also funneled significant bailout money to U.S. banks that had already been bailed out under Troubled Asset Relief Program. As AIG counterparties, Goldman Sachs got $12.9 billion, Bank of America got $5.2 billion, and Citigroup got $2.3 billion all at 100% on the dollar.

In short these dealings go to corporations and never reach the consumer level and are therefore not helping the economy. The fed now owns 53% of AIG and over 40% of GM as well as much, much more.

Is this the job of the government?

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    Gail .

    • +1
    Oct 9 2012: According to the constitution, government can spend money to establish post offices and post roads. Is an interstate highway system the job of government?

    According to the constitution, government can support the sciences and useful arts by establishing a system of patents (including copyrights). Is NASA a job of government? Are grants and funding (for the science and the arts) using my tax dollar a function of government?

    The constitution grants congress the right to print money. Is establishing a Federal Reserve that calls debt money a job of government?

    The Constitution says that the federal government should pass no law that favors one religion over another, or prohibits the FREE experession thereof, but I am forced to pay my tax dollars to christian charities and non-profit organizations that I find abominably offensive, and that force me to violate my religious values under threat of the full power of the military. Is that the job of government/

    the thing about the constitution is that it's all or nothing. As soon as you allow an exception for your favorite issue, then all issues (thus all people) are threatened.

    What government has done in the name of the people who are ignorant about American history is an abomination. I agree. But if you would fix it, you should learn about the REAL American history (which tells us that the Federalist Papers were a failed argument) and the Constitution that was supposed to have offered us protection.

    We are in election season, and both candidates are anti-constitution.
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    Oct 8 2012: NO

    The further problem is that because the crony capitalists were subsidized the price of the housing does not go down to the point where a person will buy it. This is one of the factors that extended the great depression.
  • Oct 10 2012: The government is not doing this, the Federal Reserve Bank is doing this.

    By doing this, they are showing the world, by their actions, exactly what their job is. The job of the Federal Reserve Bank is to assure the survival and profits of the big banks. Its time to limit their independence from government.
  • Oct 8 2012: "In short these dealings go to corporations and never reach the consumer level and are therefore not helping the economy."

    For once I agree with you: it would have been much more efficient to just give every adult $1000 of freshly printed money (after spending some money on the banks to make sure deposits don't evaporate, of course). Trickle down doesn't work.

    P.S. I do have to add that much of the money that was given to banks and corporations was given in the form of loans.