Andy Sutton was recently interviewed on www.contraryinvestorscafe.com and their ‘Soapbox’ series. He discussed the current financial climate in the aftermath of the Lehman Brothers bankruptcy and Merrill Lynch sale this past weekend. Listen to the interview here:
Andy Sutton's Extemporania
Bailout #5
Yesterday the Federal Reserve engineered bailout #5 of 2008; this time for mega-insurer AIG. Despite their earlier assertions that taxpayer money not be used, when push came to shove, the Feds did exactly that. While some will argue that the Federal Reserve doesn’t use taxpayer money, we know otherwise. While the Fed doesn’t collect taxes per se, they control the VALUE of our money. So when they pledge billions to back up the malfeasance of these financial companies, they are using OUR purchasing power to do so.
So far in 2008, the bailout list stands at 5 in addition to the hundreds of billions of dollars already cranked down the rat hole since last year to keep the financial system from imploding. Let’s take a walk down memory lane…
Bear Stearns – 03/16/2008
Fannie Mae – 09/07/2008
Freddie Mac – 09/07/2008
Lehman Brothers - 09/15/2008
AIG – 09/16/2008
Who’s next?
