71 thoughts on “AIG’s $150 billion “capital relief” bombshell – CDSs Written to European Institutions to get around capital requirements

  1. maxkeiser

    frances snoot:

    a) you think Basel is set up to impose euro colonialization of the global banking system . . . and therefore, should be:

    1) reformed

    2) eliminated

    Basel being just one piece of the global fractional reserve banking system where min. reserve req.’s define the basic set up

    So – are you thinking that all fractional reserve systems be eliminated?
    or just the Basel system

    and are you advocating an alternative system – like maybe a gold backed system?

    or is there something i’m missing?

  2. ronron

    after all the good advice i’ve givin for nothing on this site never got an @ from max. i feel like don rickles. :-(

  3. x


    The media’s continual comparison of the United States of America with the European Union seems spurious to me.

  4. frances snoot

    @maxkeiser:
    I’d like to know who owns the BIS/IMF/ECB central bank cabal. Can you answer that? If you do, then I can answer your questions.

    If not then we continue to fumble about in the darkness.

  5. frances snoot

    @maxkeiser:
    The application of basel has been criminally inspired and reliant upon the private rating agencies whores.

  6. Youri Carma

    @frances snoot

    Yeah great quote but Is this a case of “Mistakes”

    or a case of;

    “When your far away from the enemy make them believe you’re close, when your close make them believe you’re far away” Sun Tzu

    In other words: It was done deliberately to bring in the NWO on it’s ashes when the economy totally collapses in the western world. The famous NWO order out of Chaos approach.

  7. Mep

    So AIG “understands” that $150 billion of credit-default swaps were written by AIGFP to European Institutions (no note by the way as to exactly what’s in there – or who owns them) for the explicit purpose of getting around capital requirements – either by banking regulators or (possibly worse) EU sovereign regulations.

    Let me guess: there’s nothing at all illegal about this, right?

  8. Sherri Young

    Where has Denninger been? The fact that the big Eurozone banks used CDS to get around regulatory capital requirements was the reason given for bailing out those banks through the original AIG bailout. If I understand correctly, the regulators treated an MBS/CDS combo as an “insured bond” or the equivalent of a Treasury, hence “cash”. Without that bailout, the EU banks who were using CDS to satisfy reg capital requirements would have likely gone bust. This point was brought up in testimony in congressional hearing after congressional hearing for several months.

    Denninger is a bright guy and I read his blog every day. Lately, he seems to be distracted by a desire for gunpoint diplomacy. Must be getting too frustrated.

  9. namarama

    @frances snoot:

    He didn’t answer you re IMF/ECB/BIS ownership.

    Does he know?

    Do you?

    @maxkeiser

    Do you know?

    Does anybody?

  10. frances snoot

    @Namarama:
    I imagine that we would not know the person at all by name or any associations. But that’s about all. If one or many: e pluribus unum.

  11. Marc Authier

    Well desserved chaos. Europe sucks. What’s kind of funny is that two years ago, Europeans were smugly convinced that Europe was different from the USA. It ain’t.

  12. Youri Carma

    @frances snoot

    Yeah, obviously http://www.youtube.com/watch?v=5fhTkpv9OYo

    Pharaoh’s also were tyrannic potentates who tricked their peasants with all kinds of wizardy in believing they were gods. In Obama’s case it’s the magical teleprompter and being sure to look either side when you talk to the peasants when bamboozling them.

    Only problem is that in the time of the Pharaoh’s you didn’t need a birth certificates so that leaves him simply a bi-sexual crack smokin Chicago thug called Barry. And he never ever even took the effort to officially changed his real name Barry Soetoro into Barack Hussein Obama.

    What’s his new labor project? Building pyramids and steeling gold for his tomb?

  13. Youri Carma

    @ronron

    Question remains why the buggers vote for him? But these poles are highly colored with obvious corruption. You can smell the rats at a 1000 mile distance. Or ducks in their shelter with Villa price tag for which a MP charged the British taxpayers. Those ducks live like kings while the population eats far over dated cake.

  14. frances snoot

    http://en.wikipedia.org/wiki/File:Akhenaten_as_a_Sphinx_(Kestner_Museum).jpg

    This is significant, Youri. Thanks for the link. Here’s Yeats again:

    “The Second Coming! Hardly are those words out
    When a vast image out of Spiritus Mundi
    Troubles my sight: somewhere in sands of the desert
    A shape with lion body and the head of a man,
    A gaze blank and pitiless as the sun,
    Is moving its slow thighs, while all about it
    Reel shadows of the indignant desert birds.
    The darkness drops again; but now I know
    That twenty centuries of stony sleep
    Were vexed to nightmare by a rocking cradle,”

    Are you ready?

    “This is the classic early period look of Akhenaten: feminine curves, heavy thighs and belly”

    http://www.heptune.com/art.html

    ‘Velikovsky also posited that Akhenaten had elephantiasis, producing enlarged legs. Based on this, he identified Akhenaten as the history behind the Oedipus myth, Oedipus being Greek for “swollen feet”, and moved the setting from the Greek Thebes to the Egyptian Thebes.”

    http://en.wikipedia.org/wiki/Akhenaten

    The part of the poem ‘reel shadows of the desert birds’ seems so akin to the ‘disc worship’ of the sun pictured in the stone-cuttings with the link.

    Interesting?

  15. paganrongs

    Max says: “If you’re concerned about Nature, buy gold.”

    One thing I have learned about listening to him is to pay sharp attention to apparently throwaway comments that don’t fit into your own framework of thinking.

    This is one of them.

    “If you’re concerned about Nature, buy gold”.

    Thinking….

  16. Youri Carma

    @frances snoot

    I saw a great docu about the Pharaoh Akhnaton and he was the one who introduced the “one God” principle, only the sun. In fact he laid the foundations for the later one God Christian religion. But by doing so provoked the priesthood against him who were seeking revenge and got it. The killed him.

    Great Egyptians: Akhenaten. 3/5 http://www.youtube.com/watch?v=90xSy8ay1_I

    Great Egyptians: Akhenaten. 4/5 http://www.youtube.com/watch?v=BzVBxru3iYw

    Great Egyptians: Akhenaten. 5/5 http://www.youtube.com/watch?v=qkUV3a8lZoo

  17. Youri Carma

    @ronron

    The resembles is not so much in the looks cause Pharaoh Akhnaton had a genetic disease which gave him the strange long face, fingers and toes (see docu above).

    So in reality he didn’t look that much like Barry (Nick: Obama) but the resemblance is more in the Tyranny of both individuals. Human brains are mostly occupied by processing visual info rather than written info so I used that cunningly to make my case in the real resemblance namely in the way they both governe9d) like Tyrants.

    Both Akhnaton and Barry have a higher power structure above them. Akhnaton the priesthood and Barry the Brotherhood skull and bones I-lluminatie. Akhnaton tried to ignore that power above him which at the got him killed. Barry also can’t ignore this power above him so has to do exactly as told otherwise they kill him. And so he does.

  18. namarama

    @ronron:

    This NAMA adventure will fail, Even IF the system remains intact long enough to rate its success. circa 10 years. The whole premis of its structure is crumbling proportional to Irish house prices, ( NAMA assumes a property value increase over 10 years on all its portfolio, wich contains un serviced sess pits miles from fucking any where)

    Landloards here have begun increasing rent on retail properties to inflate their “NAMA” evaluation, Even though that results in renters fleeing??? They’re all in on it.

    It’s disgusting…

    Oink oink….

    I’m not ascared !

  19. harry_w

    @ frances,

    I’d like to know who owns the BIS/IMF/ECB central bank cabal. Can you answer that? If you do, then I can answer your questions.

    If not then we continue to fumble about in the darkness.

    The BIS is owned by it’s member central banks.

    The IMF is an international organisation with it’s board made up by appointees of the member states, and voting power allocated so that the US is the only state with a veto. The ECB is an EU institution.

    There is no ‘BIS/IMF/ECB central bank cabal’, they’re all distinct organisations. Unless you can point to something that shows otherwise.

    Now can you answer the questions Max asked? Your first attempt looked like a crude deflection by conjuring up this ‘BIS/IMF/ECB central bank cabal’, which just looks like pointless mystification to me.

  20. Youri Carma

    @ronron

    There is lot of jibber jabber in the article but the essentials is in this paragraph i think.

    “In a speech tonight, Mr Lenihan defended the decision to establish Nama and announced his intention to secure a €3 billion cut in the national deficit in 2011, with €1 billion to come from the capital budget and the remainder to come from public spending and reform of the taxation system.”

    Essentially Ireland has to squeeze for €3 bill – €2 bill in higher taxes and cutting of public spending. €1 bill cut from the capital budget. How that is going to create more jobs is a riddle.

    I would say fuck them and default. This is the same ol trick the IMF has been using to suck out the third world for all it’s resources. It’s a crime game now put on Europe with Iceland as first major victim and Greece as second in the picture. But later they will use it on all of Europe and the U.S.A.

    What these basters usualy do is put in toll roads which pay directly to the Rothschild and Rockefellow bastard sons. That’s how they’ve kept the third world poor for sol long in practical servitude and stealing all their resources. It’s an old bank trick they’ve been playing for years while we looked the other way. Now it’s our turn to get duped.

    IMF same exact four-step program.
    1 Privatization ‘Briberization.’

    2 IMF/World Bank capital market deregulation allows investment capital to flow in and out the “Hot Money” cycle.

    3 Market-Based Pricing, a fancy term for raising prices on food, water and cooking gas

    4 IMF and World Bank call their “poverty reduction strategy”: Free Trade- “The IMF riot.”

    http://www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/

  21. Youri Carma

    @@ronron

    Look in this article they start with a lying to you: Quote ““This is not a committee to shake down money from the taxpayer.” while in the other article they clearly state “from public spending and reform of the taxation system.””

    And “reform of the taxation system reform” doesn’t mean you pay less. MTFs!!

    Further: “But Fine Gael’s social and family affairs spokeswoman Olwyn Enright last night described the expert group as a “talking shop on mortgages” which she said was a “pathetic response to a national crisis”.”

    So, If you have a mortgage you get subsidized in cheaper loans sort of – not for the mortgage holders specialy but mainly to preserve the banking system but If you rent a house they say fuck you! So again the non-savers are helped indirectly.

    Expert group to advise on ways to help those in debt http://www.irishtimes.com/newspaper/ireland/2010/0226/1224265203969.html?via=rel

  22. Youri Carma

    @@ronron

    So the people who have no mortgage (But also pay tax) pay for the people who have – well not for the people but for the banksters who gave out those mortgages.

    You see?

  23. frances snoot

    So banks own banks, Harry? I thought people owned banks, and banks serviced people. You complain about me conjuring an entity called a ‘cabal’, and yet you serve agency on banking institutions. Max calls the ‘enemy’ Goldman Sachs, and you do not batt an eyelash. Yet you are aghast at my reference to the cabal of the central banking system.

    If you’re right then we have nothing to worry about, so why should I need to answer? All is in the good hands of the G20 governing system, right? Who cares what I think.

    I think Max was asking a rhetorical question. My opinions most likely do not concern him.

  24. ronron

    @Youri. it really worry’s me that snoot doesn’t see what’s coming. i think she’s pissed at me. i do stick my nose in.

  25. frances snoot

    Who’s on first base?

    What?

    What is on second. I said who!

    You said WHAT?!

    I said who is on first?

    We were talking about bank ownership.

    That’s not what I asked.

    Who cares what you think. You’re worried about the Bretton Woods institutions. Might as well throw rocks at the sun.

    Let’s throw rocks at first base. Who’s there.

    Is who there? I thought his name was What!!!

    Nonsence, let’s get some truth around here!

    Well, don’t ask HER. She references epistemology nuance.

    That’s what I said, who. Enjoy the game.

  26. frances snoot

    http://www.voxeu.org/index.php?q=node/3387

    Reforming global governance: How to make the IMF more independent
    Daniel Gros Ulrich Klüh Beatrice Weder di Mauro
    1 April 2009

    “Differeniate voting procedures for lending and analytic functions

    The decision rule of the Fund should thus distinguish between financial measures (granting balance of payments assistance) and the analytical function of the IMF, especially macro surveillance and potentially as the main organisation to look after sources of risk in the global financial system.

    This needs to change in order to give the IMF the independence it needs to become a credible impartial judge of balance of payments disequilibria and sources of risk to global financial markets. The IMF staff needs to be independent in these functions which should no longer be micro-managed by the Executive Board.
    The required independence of the IMF staff can be achieved simply by stipulating that the Board of the IMF only oversees the work of the IMF on its analytical functions and, even more importantly that its decision making mode (and composition) is different in its oversight of these areas. This could be achieved with two simply decisions:
    The Executive Board should be enlarged by a number (possibly 3) of independent directors (as in the private sector) and the voting principle should be one man one vote. The independents board members would constitute only a small minority But their presence and professional expertise would give them a disproportionate weight and they would have a disciplining effect since they are to represent the general interest and would be free to go public with their views.
    Management would also be free to take positions on all issues not involving the use of fund resources unless it is explicitly overruled by the expanded board. This would give management de facto considerable independent since under the one man one vote principle the larger member countries could no longer block issues just because they are inconvenient from a domestic political point of view.”

  27. Marc Authier

    The economy is dead. Welcome to the new science courtesy of the cynical nazis bastards CITIGROUP. They now call it USA the first PLUTONOMY.

    http://www.ibtimes.com/articles/20090907/citigroup-2006-americamodern-day-plutonomy.htm

    A government and a country by the ultra rich and ONLY for the ultra rich. The model already exist in third world countries. That’s what theses bastards from CITIGROUP should mention. LIke I said these bastards are dreaming of China.

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