The Economy & AIG (American International Group) – How Sour Mortgage Loans Hurt AIG

WASHINGTON  —  In a bid to save financial markets and economy from further turmoil, the U.S. government agreed Tuesday to provide an $85 billion emergency loan to rescue the huge insurer AIG.

Just how did AIG, the world’s largest insurance company, get into this position?

AIG, which is financially stable, is suffering from a “cash flow crisis”.

That cash flow crisis is related to AIG’s insurance of mortgage backed securities. AIG wrote insurance policies to cover a portion of the financial losses on thousands of “Liar” and ‘NINJA” Loans. 

To read more about these loans:

https://mcauleysworld.wordpress.com/2008/09/15/the-financial-services-housing-crisis-how-did-we-get-here/

https://mcauleysworld.wordpress.com/2008/09/10/senator-cornyn-seeks-criminal-inquiry-of-fannie-freddie-executives/

https://mcauleysworld.wordpress.com/2008/09/08/the-truth-about-fannie-mae-and-freddie-mac-900-billion-in-corrupt-lending-practices/

Politicians who claim that AIG’s difficulties are due to a “bad economy” are putting the “horse before the cart”. The reckless use of NINJA & Liar Loans have caused substantial damager to the economy. In short America is overleveraged – America has taken on more debt than it can afford – the security to support that debt (example: property values) was over evaluated.  

America must “tighten it’s buckle.”

The Government must reform oversight and eliminate ineffective bureaucracy, cut taxes and foster an environment of growth. Developing all available energy sources will not only reduce costs and spur economic growth, it will also strengthen American security by ending dependence on foreign energy sources.

VIDEO: MSNBC’s DECEITFUL EDITING; CARLY FIORINA COMMENTS CUT BY OBAMA STAFF FOR AD

FOX NEWS

Barack Obama’s campaign was “deceitful” when it clipped part of an interview in which Republican Victory 2008 Chairwoman Carly Fiorina said John McCain was not qualified to be the head of a corporation, Fiorina said Tuesday.

Earlier in the day, Fiorina, the former CEO of Hewlett-Packard, appeared on MSNBC, where she said none of the candidates is qualified to run a major corporation, but that should not prevent them from running the country.

“I don’t think John McCain could run a major corporation. I don’t think Barack Obama could run a major corporation. I don’t think Joe Biden could run a major corporation. But on the other hand a major corporation is not the same as being the president or vice president of the United States,” Fiorina said.

“It is a fallacy to suggest that the country is like a company. So of course to run a business you have to have a lifetime of experience in business, but that’s not what Sarah Palin, John McCain, Joe Biden or Barack Obama are doing,” she said.

But the Obama campaign, in an e-mail linking to a YouTube video of Fiorina’s statement that was clipped after the first sentence, berated McCain for not winning the trust of even his own supporters.

“When John McCain’s top economic adviser doesn’t think that he’s qualified to run a corporation — how on Earth can he run the largest economy in the world in the midst of a financial crisis?” Obama spokesman Bill Burton said in a statement accompanying the shortened clip.

“Apparently even the people who run his campaign agree that the economy is an issue that John McCain doesn’t understand as well as he should. Senator Obama has been ahead of the curve trying to prevent this crisis and he’s called for new rules of the road to make sure that it doesn’t happen again.”

Fiorina lashed back at the suggestion she doesn’t trust McCain and said Obama is the least qualified of any of the candidates to run the country.

“I think this is a pattern of the Obama campaign. What they did was deceitful. They literally cut words off,” Fiorina told FOX News.

“Secondly, they are sort of flooding the zone with nonsense. Look, different experiences prepare you for different jobs. Sarah Palin and John McCain are uniquely experienced to be the president and vice president of the United States. Barack Obama is the least qualified candidate running today in terms of his executive experience, in terms of his time in public office. So I think the Obama campaign would do very well to stop hurling the experience argument, because their candidate for president has less than any one else for office right now on these two tickets,” she said.

Click here to see the entire clip of Carly Fiorina.

Click here to see the clip released by the Obama camp.

IS THIS THE CHANGE HE EXPECTS US TO BELIEVE IN?

http://elections.foxnews.com/2008/09/16/fiorina-obama-camp-deceitful-in-clipping-my-quote/

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