I don’r understand entirely what the exchange is? Can someone break this down for me in steps? Thank you.
And now the AIG is getting another 37.8 billion from the FRB! Why? They’re one of the largest companies of the world, but is this bailout all that really necessary? What about Fannie Mae & Fannie Mac? What was up w/ their deal? Why did they need a bailout? I know AIG needed it because of the loans… but what about F&F? And why is the Federal Reserve in control of loaning so much money? Shouldn’t that be the job of Congress, and solely Congress?!
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November 16th, 2009 at 3:06 pm
AIG is one of the biggest insurers of credit default swaps(default insurance) and has one of the farthest extending liabilities of any company.
If they fail, then many others probably would’ve gone down.
As for Fannie and Freddie, they constitute the biggest lender of home loans to people to finance their homes.
The package gives the Federal government a majority stake in a private company, effectively nationalizing the company in exchange for tighter regulations.
November 16th, 2009 at 3:06 pm
There is a lot to answer in your question. But the basic answer is yes it is the job of Congress to control our Monetary System. The problem here is they delegated this constitutional mandate to the quasi-government entity of the Fed in 1913. Our present system is based on debt and that is the root problem.