Sunday, November 9, 2008

Big Money Boys Belly Up to the White House Bar, Yet Again

Treasury Chief Hank Paulson, our financial rescue czar, wiped out a potential $140 billion in taxes for banking companies. This is on top of the $700 billion big money boy bailout passed by Congress. Yet, Hank did it with a regulation change. No law provided the huge relief for financial firms.

AIG lined up more billions in taxpayer funds. The first $143 billion wasn't enough to save the company. In a confusing, financial magician move, AIG will get $40 billion for preferred stock, $52.5 billion in TARP money for junk assets, and their total debt to Uncle Sam shrinks by $25 billion. That sleight of hand brings the total for AIG to over $250 billion.

How's the Bush Bailout totalling up?

TARP $700 billion
AIG $250 billion
Fannie Mae & Freddie Mac up to $200 billion
Direct capital injections to banks of $900 billion
corporate commercial paper -$1.3 trillion qualifies
Holding commercial paper in an off balance sheet vehicle
Fed funds rate cut to 1%
Bear Stearns $29 billion
Bank tax savings $140 billion

We're closing in on a potential $4 trillion and that's without any direct aid to Big Auto. That's serious Corporafornication. All the big money boys need for Christmas is for Obama to put off his tax increases for people making $250,000 or more per year.

Barack's new Chief of Staff Rahm Emanuel wouldn't clarify his boss' intent on this campaign promise. He dodged George Stephanopolis' inquires with the skill of a lipstick-less pit bull.

CNBC pundits saw the President elect open this door at last week's press conference. They posited tax increases for the rich could be on hold until the economy improves. Rahm didn't move it a millimeter.