http://georgewashington2.blogspot.com/2008/11/citigroup-fresh-from-being-bai led-out.html x
Tuesday, November 25, 2008 Citigroup <http://georgewashington2.blogspot.com/2008/11/citigroup-fresh-from-being-ba iled-out.html> - Fresh From Being Bailed Out of Derivatives Black Hole - Now Selling Yet Another Type of Derivative Citigroup has received <http://georgewashington2.blogspot.com/2008/11/instead-of-giving-citigroup-2 0-billion.html> $45 billion in direct bailout money, plus a guarantee of $306 billion. Citigroup was brought to its knees by - among other things - credit default swaps bet against it, and huge derivatives holdings. Goldman Sachs and JPMorgan also each got $25 billion in taxpayer bailout money. The bailout money helped save them from the black hole of derivatives debt. So what are these grateful companies doing now? Are they confessing about the error of their ways, and warning others to stay away from derivatives? Uh, no. They are using a type of derivative called "Default-Recovery Swaps" to bet against other companies. As Bloomberg writes <http://www.bloomberg.com/apps/news?pid=20601087&sid=a_L5pzskD4rU&refer=home > : Goldman... Citigroup ... and JPMorgan ..., which helped turn bets on company defaults into a $47 trillion market, are among banks offering wagers on the amount investors may recover from bonds after borrowers go bankrupt. Credit-recovery swaps are trading on the debt of about 70 companies, including automaker General Motors Corp. and bond- insurer MBIA Inc. That's up from 40 during the summer, according to Mikhail Foux, a strategist at Citigroup in New York. *** Also known as recovery locks, the agreements are bought as insurance by sellers of credit-default swaps, such as banks, hedge funds and insurers. "The market definitely has potential to grow," Foux said. "As we see more defaults -- and there's no doubt we're going to see more defaults -- you're going to see more recovery swaps trading."*** Specifics about recovery-lock contracts aren't generally available because they are made privately and don't trade on an exchange. So let me get this straight. Instead of getting out of toxic derivatives, these recipients of taxpayer handouts are selling yet another type of derivative which allows people to bet against the failure of companies like GM - that the taxpayers are probably going to end up paying to bailout. <http://www.blogger.com/post-edit.g?blogID=53246864840716464&postID=34125085 92966218432> 2 comments: jbpeebles <http://www.blogger.com/profile/11386620564536871255> said... Can you believe these jokers? The solution is offered by the same people who brought you the problem. Worse, the reason fro the credit collapse--risky derivates trading--is still going on. No wonder the Dow isn't getting much traction. It'll pop up then collapse. Citigroup would be bankrupt if not for market intervention. I guess the reasoning is that Citigroup's collapse would cost more than saving it. Talk about moral hazard! Some astute commenters have gone so far as to say the creation of the FDIC is the reason for the S&L collapse back in the 80s. The premise is that banks feel that they can take on any amount of risk and the FDIC will protect their depositors. Problem is, the FDIC doesn't have enough money! More will have to borrowed through the Fed, meaning the banks will collect the interest on bonds issued in return for bailout cash. Banks get the subsidy (reward for failure) while taxpayers get to pay interest on the subsidy to the recipients of the bailout money! November 25, 2008 4:05 PM <http://georgewashington2.blogspot.com/2008/11/citigroup-fresh-from-being-ba iled-out.html?showComment=1227657900000#c8589947319587867312> <http://www.blogger.com/delete-comment.g?blogID=53246864840716464&postID=858 9947319587867312> Tellustanian <http://www.blogger.com/profile/05552374434991807865> said... Just hang them HIGH! There is nothing else left fot the tax payers to do! November 25, 2008 6:00 PM <http://georgewashington2.blogspot.com/2008/11/citigroup-fresh-from-being-ba iled-out.html?showComment=1227664800000#c5990554515041672229> <http://www.blogger.com/delete-comment.g?blogID=53246864840716464&postID=599 0554515041672229> Post <https://www.blogger.com/comment.g?blogID=53246864840716464&postID=341250859 2966218432&isPopup=true> a Comment Links to this post 11/26/08 <http://newcitizenship.net/?p=3950> <http://www.blogger.com/delete-backlink.g?blogID=53246864840716464&postID=34 12508592966218432&backlinkURL=http%3A%2F%2Fnewcitizenship.net%2F%3Fp%3D3950> Melamine found in US infant formula. Melamine is the chemical found in Chinese infant formula _ in far larger concentrations _ that has been blamed for killing at least three babies and making at least 50000 others ill. ... Posted byryan atNovember 26, 2008 5:58 AM Citigroup <http://newresearchfindingstwo.blogspot.com/2008/11/citigroup-fresh-from-bei ng-bailed-out.html> - Fresh From Being Bailed Out of Derivatives Black Hole ... <http://www.blogger.com/delete-backlink.g?blogID=53246864840716464&postID=34 12508592966218432&backlinkURL=http%3A%2F%2Fnewresearchfindingstwo.blogspot.c om%2F2008%2F11%2Fcitigroup-fresh-from-being-bailed-out.html> George Washington's Blog (Click Here for Part 1) Tuesday, November 25, 2008 Citigroup - Fresh From Being Bailed Out of Derivatives Black Hole - Now Selling Yet Another Type of Derivative Citigroup has received $45 billion in direct ... Posted byconcerned heart atNovember 25, 2008 6:22 PM Citigroup <http://newresearchfindingstwo.blogspot.com/2008/11/citigroup.html> <http://www.blogger.com/delete-backlink.g?blogID=53246864840716464&postID=34 12508592966218432&backlinkURL=http%3A%2F%2Fnewresearchfindingstwo.blogspot.c om%2F2008%2F11%2Fcitigroup.html> George Washington's Blog: Citigroup - Fresh From Being Bailed Out of Derivatives Black Hole - Now Selling Yet Another Type of Derivative. Posted byconcerned heart atNovember 25, 2008 5:45 PM *** exposing the hidden truth for further educational research only *** CAVEAT LECTOR *** In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. NOTE: Some links may require cut and paste into your Internet Browser. Please check <http://tinyurl.com/33c9yr> http://tinyurl.com/33c9yr <http://groups.google.com/group/total_truth_sciences/topics?gvc=2> http://groups.google.com/group/total_truth_sciences/topics?gvc=2 for more real news posts and support the truth! (sorry but don't have time to email all posts) free book download: <http://www.lulu.com/content/165077> http://www.lulu.com/content/165077 or http://www.lulu.com/items/volume_63/165000/165077/21/print/165077.pdf <http://blogs.albawaba.com/alexanderjames> http://blogs.albawaba.com/alexanderjames http://blogs.albawaba.com/Alexanderjames/page/links http://bb.domaindlx.com/alexjames999 *** Revealing the hidden Truth For Educational & Further Research Purposes only. *** Welcome to Real News Edited excerpts, non-partisan, pro-truth-honesty-peace, and anti-war-lies-crime. The purpose is to expose corruptions, frauds, deceptions, lies, criminal plans, cover-ups and free-speech silencing by powerful people in governments, foundations, corporations and media, which are done using the name of democracy, human rights, false interpretations of religions, cults, occults, patriotism, economy, business, media, elections, justice, charity, etc., and are used to trick the public into hatred & wars and out of their lives, money and freedoms, while the propaganda we are subjected to makes us believe that we have evolved to where such things cannot happen [remember slavery, apartheid.]. Please share what you learn with others who do not have access to the internet. This is only a tip of the iceberg. Stop the hatred that is used to promote the dehumanization of the victims of predatory aggressions;spread the truth;free your mind from being a Zioncon occupied territory of the neo-feudal lords by rejecting the mainstream news propaganda. Caution: real news may induce a kind of schizophrenia because it provides a true vision of reality which is so different from the one we are presented by the mass media spins. Latest real infonews available at alternate news. ***** Check whatreallyhappened.com, inforwars.com, whtt.org, savethemales.ca & other alternative news sites for latest news flashes. In Truth We Trust! The opinions expressed herein contain positions and viewpoints that are not necessarily those of the recipient, disseminator or others mentioned in the information. These are offered as a means to stimulate dialogue and discussion. NOTICE: Due to Presidential Executive Orders, the National Security Agency (NSA) may have read emails without warning, warrant, or notice. They may do this without any judicial or legislative oversight. You have no recourse, nor protection.......... IF anyone other than the addressee of this e-mail is reading it, you are in violation of the 1st & 4th Amendments to the Constitution of the United States. Patriot Act 5 & H.R. 1955 Disclaimer Notice: This post & all my past & future posts represent parody & satire & are all intended for entertainment and amusement only. To be removed from the list, please reply with the subject line "REMOVE" To receive email at another address, please reply with subject line "CHANGE" To receive email, please reply with "WEEKLY" --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "total_truth_sciences" group. To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/total_truth_sciences -~----------~----~----~----~------~----~------~--~---
<<inline: image001.gif>>
<<inline: image002.gif>>
