This news has made it to the front pages, but is still important enough to cover. According to the linked NY Times article, in a matter of 1-2 months, AIG has spend most of the $123 billion bailout money it received from taxpayers.
But the latest news from today show that not only did AIG blow through most of the $123 billion bailout. They are getting another line of credit for $21 billion!!!!
So you must be asking yourself why are we giving so much money to AIG? Why don't we let them fail? It turns out that there is more to the AIG implosion than what most people know. In the linked video of CNBC's Fast Money, there is a small little segment where one of the show's hosts, Karen Finerman, reveals something that is of interest between Goldman Sachs and AIG. She doesn't go into much detail around the 6 minute mark of the video, but she does state that there is some sort of interest that binds AIG with Goldman Sachs.
The more the Oracle watches CNBC, the more he realizes that the channel is the FOX News of the financial news. It seems like everyday during this credit crisis, the so-called "experts" have been calling a bottom to the stock market when we all know damn well that is not the case.
With that said, every now and then a little bit of valuable news or insight does come out from CNBC or its hosts. The below video is a recording of a radio show based in Arizona. The hosts are actually quite entertaining. In this video they play the interview around the 1:30 minute mark with the host of CNBC's Fast Money, Dylan Ratigan. Mr. Ratigan usually will make comments regarding the market and its policies, but rarely does he come out to state an opinion regarding the people in charge of our political system.
In the interview his states his opinion regarding the conflicting situation of having Hank Paulson, the current Treasury Secretary and ex-CEO of Goldman Sachs, steer us through the current financial crisis. For those that don't know, while Hank Paulson was at Goldman Sachs, he successfully lobbied Capital Hill to allow banks/investment firms to change the debt to asset ratio from 12/1 to 40/1. As a result of this move, most banks were stretched thin when subprime loans began imploding and this extention of leverage was one of the reasons why banks were going bankrupt.
Yes, Paulson is now in charge of cleaning up the mess he created and Dylan Ratigan has a few good points regarding the Paulson's conflicts as the Secretary of the Treasury.
Many times, valuable news will only show up in small segments like the interview with Dylan Ratigan.
I'm just an average dude who, like you, know that the best news and information is burried in the back pages of newspapers and in the archives of video databases.
