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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (47271)	9/17/2008 10:26:50 AM
From: puborectalis	Respond to of 224704

"Fundamentally sound" U.S. Treasury three-month bill rates dropped to the lowest since at least 1954 on concern that credit market losses will widen after the bankruptcy of Lehman Brothers Holdings Inc. and the federal takeover of American International Group Inc. Investors pushed the rate as low as 0.233 percent as the loss of confidence in credit markets deepened. Reserve Primary Fund, the oldest U.S. money-market fund, became the first in 14 years to expose investors to losses after writing off $785 million of debt issued by Lehman. ``People are extremely cautious with respect to who they're lending money to at the moment,'' said Richard Bryant, a Treasury trader at Citigroup Global Markets Inc., one of the primary dealers that trade government securities with the Federal Reserve. ``They're willing to buy very short-dated Treasury instruments and forgo returns and in some cases pay for the privilege of knowing their money is safe.''

To: Kenneth E. Phillipps who wrote (47271)	9/17/2008 10:37:46 AM
From: tonto	2 Recommendations Read Replies (2) \| Respond to of 224704

I have not read the details of the AIG bailout. You posted earlier that we lent them the money, and now you are saying that we bought 80% of AIG? That does not sound realistic. Anyone have a link? Never mind the link request. I checked it out. I see that they have a warrants right to purchase up to 80%. Your post is not true. The interest rate is good for us if they can pay their loan,,, Details of the deal AIG responded to the Fed bailout with a statement describing the arrangement as the "best alternative" for the company AIG is expected to sell assets and use those proceeds to repay the loan, which is collateralized by all the assets of AIG and its main subsidiaries. AIG will pay a steep interest rate on the loan -- the three-month London interbank offered rate (LIBOR) plus 8.5 percentage points. Based on Tuesday's LIBOR quote of 2.81%, that would be an annual interest rate of 11.31%. Jake, is it Socialism for the US Government to buy 80% of AIG?