GOOD NEWS! THE AMERICAN TAX PAYER SAVED $24,000,000,000 THIS A.M.

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GOOD NEWS! THE AMERICAN TAX PAYER SAVED $24,000,000,000 THIS A.M.

There's little mortgage money around for home buyers, but. . . . .

About 2 weeks ago, in his zeal to preserve every financial institution listed on the stock exchange(s) in the country, even the ones who plundered the U.S. home buyers, made untold $Billions at the expense of the American housing and financial industry, Secretary Paulson stepped in and offered a loan to AIG $85,000,000,000.

AIG announced this morning that they will sell some of their assets and accept a loan from the U.S. tax payer of only $61,000,000,000, thus saving the taxpayers $24,000,000,000.

SO, DON'T YOU FEEL A LOT BETTER???

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Posted by Lenn Harley, Real Estate Broker, Virginia & Maryland on 10/03/2008 10:18 PM

Comments (63)

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63 Comments on GOOD NEWS! THE AMERICAN TAX PAYER SAVED $24,000,000,000 THIS A.M.

OCT

2008

Oh Lenn, we saved that in column A so we could fund more in Column B.. like adding to the Bailout Bill... another $100 Billion dollars in PORK. YIKES YIKES.. i say that because this is a public forum and I can't say dam dam.

Hey Lenn do you think they would mind a short term no-interest loan on that $24 billion? I can pay them back in about 6 months. Just want to invest in some hot CMOs! They won't miss that money that much.

Lenn, it has become surreal. I feel like I'm watching a movie....a scifi.

Lenn...

Well bless their hearts, that is so generous of them BTW I'll take 5 million from the government instead of 10 million. That would save the taxpayers 50%! Small potatoes compared to the BILLIONS being put of the table. lol

Isnt the interest rate on that loan to AIG something like 8pts above libor or something crazy like that. I know the rate was far worse than what most subprime homeowners got.

LOL at Jeanean. It's more like watching Wife Swap.

Personally, I'm disappointed that they lumped in the renewable tax credits in to the bill. It should have stayed separate.

Hi Lenn. I feel a little better. Wells Fargo taking out Wachovia with no govt. intervention also makes me feel better.

Capitalism at work.

Thanks for writing,

Ken

Jamie - I don't know what the interest is but a guy I know works for AIG and he said something on the lines of "it isn't free money - they have to pay about $10 billion a year back." (at lesat at the initial loan amount).

I can sleep tonight with a peace of mind I have not had in months! LOL! I cannot tell what is happening anymore. I just heard the Wachovia story this morning! I hate to even go to sleep anymore - I am missing too much breaking news.

Hi Lenn, Heres an idea. If we add this savings to all the money I'm getting from the Nigerian scammers we should be able to pay off the national debt. Well, it's a start. Happy Friday !

Wow I think I'll go out and charge breakfast at IHOP with all my savings :-(

I read an article yesterday in Fortune (I think) stating that the contract terms were so unfavorable to AIG that they will have to sell several divisions. I didn't check into it enough to determine whether it was the truth or spin, but this sale seems to indicate a level of truth.

Uggghhhhh. Let me think...No. KM

Oh my word... this just keeps getting better and better... What are we going to do when other countries start demanding we pay what we owe them? We don't have enough money printed right now to pay off our national debt, so our answer is to lend more to bloated private businesses that f*cked up? Seriously...

Gee, What a novel idea. Sell off some of ther "assets" and give us a break. Maybe they need to sell off all their assets before we help them. What a joke.

Lenn- Once I get past a certain amount of zero's I stop counting :)

Look at the bright side, there will be no disruption in the production of Puerto Rican Rum and no shortage of kids with wooden arrows.

Let's all go to Sizzler!

YIPPPEEEEEEEEEEEEEE!!! Come on, Paul (taking him up on his invitation in comment above) and Lenn! My treat! GBU!

Boy do I feel better - funny I don't feel better!? What is going on I should feel better, right? Feels like the corn maze I just visited! ~Rita

Amazing they didn't give the $24 million to some executive for getting the government to bail them out.

Wow, I dont feel one bit better. I wonder if there is something wrong with me. Saving that much money should of made me almost giddy.

Best,

Scott

Lenn--Looks like that was spent this afternoon...along with a few billion more.

In the end, this will end up making money for the US Government. Just watch. Keep in mind that this is a loan.

Can I laugh now????

Lenn, I just heard that Citicorp is threatening to sue to get Wachovia, and a bunch of tax payer dollars their other suitor doesn't need. Now that'll be interesting to follow.

Patricia. I seem to recall that Citicorp was taking over Wachvia in a workout with the government involved.

Seems to me that Wells Fargo just made a bettr offer without taxpayer money.

Geez! That's all we need, a bunch of lawsuits tying these money grubbing entities up for years just to see how much they can get from the taxpayer.

Stick the pork with a wood fork...Oh, I meant arrow. What the hell? Nifty number crunching Lenn.

I don't feel better. And Wells Fargo? They hold tons of bad sub prime loans and are the second highest holder of foreclosed ppties here in NE Ohio. Like i said on the Wash Post site earlier, don't be swayed by past performance, Wells Fargo, mark my word, will be coming to us for monies within a year.

Lenn- I feel so much better knowing that....and Paul, why you stealing my sizzler line? Sheesh!

Lenn, Is this our children's or grandchildren's money we are saving??

I really can't even talk about this....@#&$#*

What are they thinking?!?!

Aloha Lenn,

The short answere is that I feel like someone with a sharp stick in the eye

Lenn - I feel like I've been on the roller coaster ride of my life. The ups and downs, thrills and chills of riding through this saga is more than I can stand. I'm in for SIZZLER but would like to cast my vote for Texas Roadhouse :-)

Lenn,

Why does this give me such a warm and fuzzy feeling!!! Thanks, Fran

Lenn, I think we all feel quite special and what a thrill to know we made SUCH a DEAL!

Oh, Lenn, thanks for telling us that. I feel so much better knowing they only needed $61,000,000! Why, now we'll have money left over to dole out to some other insipid give-away program!

Lenn, do I sense a bit of sarcasm? Uh, duh. I can just say honestly that I'm glad they accepted what they did. My retirement account is with an AIG company. This is all very nerve wracking. I'm letting it ride though as I don't want to contribute to the panic.

Maybe this is just a symptom of science like "what goes up must come down?"

*smile* I had no idea they granted us a rebate! Thanks for the good news.

Later in the rain~Deb

I feel so much better, I will write them a check from my bank account so we all don't have to.

Take care!

RJH

Lenn- WOW, thanks AIG! This is a circus! It is hard to stand by while those who are supposed to represent us say yes to a bill that is filled with crap that has nothing to do with the credit crisis. How does a 4 page bill turn into over 400 pages, and how many of them read the bill in its entirety?

OCT

2008

We'll try and not spend it all in one place :-) ... geeze ... what will happen next.

Great. We are only losing 61,000,000,000 now. What a great country!

Wow, that just givesi me a warm and cozy feeling. So glad to hear the good news.

Bob & Carolin. Who knows? Mr. Paulson will have to distribute the spoils of this legislation in strange and mysterious ways or we'll figure out what he was up to.

Katerina. This mess was orchestrated by the leadership of the House and Senate to spread the credit or blame depending on how it turns out. It was a farce.

Empire. That's the spirit.

Deb. What rebate??

Sharon. Isn't it the truth. Wouldn't you love to have those $Billions to "give away"?

Gena. I doubt that the intent was to make us feel special. Once the coffers were opened to one, it became habit forming to open the coffers to more and more giveaways. Gee, it must be habit forming.

Fran. If this makes you warm and fuzzy, you are indeed positive.

Donna. You and Paul may be eating at Sizzler, but you can bet your boots Paulson and the AIG guys will be eating at Club 21.

Bill. You are not alone. Mr. Paulson and Congress obviously believe that they can buy their way out of the trouble they created with their neglect and incompetence.

Terri. I agree. It's hard to write about. I'm almost left speechless too.

Gary. I can't really focus on the $24,000,000,000 we're "saving". I can't help but thinking about the $61,000,000,000 we're spending.

Jeremy. Paul has a quick trigger brain.

Carole. Could be. Now that they have Wachovia, they've got a lot of "hand out" clout.

Debbie. Thanks. I love crunching in the $Billions. It's one of the few vicarious thrills I like.

Gail. I'll say it. Damn, damn, damn. This is a spot on the capital economic system of the United States of America. OUT DAMN SPOT.

Michael. I suspect that anyone could make money on $24,000,000,000, except the United States Department of the Treasury.

Jeanean. Me too. Someone wake me up.

Coweta. The numbers defy imagination.

Jamie. More reason do doubt the logic of the transaction.

Stephanie. Congress doesn't know how to separate. They only know add-on.

Ken. Let's hope that WF gets the deal through. Washovia stockholders may not sit by quietly.

Steve. The question is, are any of these bail outs a good deal for the American tax payers?

Jim. Wake up. Of course the only really important news this a.m. is O.J. sitting in a cell. We'll have to listen to that all weekend.

Bill. If the Nigerians were smart, they'd send their letters to Sec. Paulson. He's the biggest sucker in the country.

Cindy. O.K. IHop for breakfast and Sizzler for dinner.

Erik. I can't believe that any company that needs even $61,000,000,000 should still be in business.

Kristin. Me either.

C-Tann. Not to worry. China will be repaid when Paulson buys all their bad paper.

Bob. The government and the consumer have a different definition of "asset".

Kathy. I get a kick out of typing them. How often do we get the opportunity?

Amanda. Thanks, I needed that.

Paul. I believe that you're going to have some company.

Elizabeth. Sizzler must be popular. It appears that a crowd is forming.

Rita. When you can find your way out, folks are meeting at Sizzler to celebrate.

Michael. It ain't over till it's over.

Scott. Folks have been suckered into sponding to save forever.

Teri. Indeed, a few $Billion more.

Maureen. It may be a loan, but it's also lending money that we don't have.

Sally. Yes, laugh out loud.

Lenn - so when do I get my check for my $80 share of the savings? Now, if we can only get congress to be so frugal.

Reminds me of the first time I saw a HUD settlement statement. Do you understand where the monies are going? No, I mean duh yes....

All this saving us money and yet my wallet is no fatter. Huh. I must be stupid or something...

Lenn - Well, that was mighty decent of them to only take the $61 billion. So helpful!

I liked the idea of giving tax breaks to investors so we can jump start this economy again. Take away capital gains tax and let people do what people do best-spend money.

"even the ones who plundered the U.S. home buyers"

Still playing the blame game I see........last time I checked, obtaining a mortgage was a voluntary thing and not something that was a requirement. That, in this free country, you are able to decide which product is best for you. That you have the ability to sit at a closing and read what you are buying and, if you are refinancing into another product, that you have 3 business days after the closing in which to change your mind.

I'm sure the intent of the 280 or so lenders that have gone down since last May was to "plunder the US Home buyers", put themselves out of business, and wreak havoc on our economy. A terrorist couldn't have laid out a better plan to topple our dollar and destroy our economy.

Yes, the market got top heavy to say the least but the ripple that pushed this mess over the edge last year was from Mr Greenspan himself raising the fed interest rates like he did (which are linked to the ARM's) ......even after himself suggesting that there were too many ARMs products being utilized back then and that this concerned him. Do you think he "retired" at a convenient time? I do....

Lenn, You have good content in your posts but I for one am tired of the constant finger pointing/pot shots towards the lenders in your posts. I still read most of them anyway, but it is annoying.

Happy Trails.....

Michael

Sorry but those savings are going to the study of why fish POOP in the ocean, or was it bears in the woods anyway SORRY.

Selling a few assets, why not sell all of them and save even more money! Do these people think we are idiots?

wow, thanks for the good news, I didnt realize how much money I made this mornining, I am going to splurge and super-size my value meal lunch this afternoon :)

Simply Unbelievable!

Share your solutions.....let your voice be heard.

That's why we have elected officials. Tell them what you think !

Best Regards

Lenn it's just a big joke anymore. Maybe we can lend the money we saved to California now.

Cool. We saved 28% . Pretty nifty, I'd say. Now what to do with all those bucks we saved. :(

Jeff

Jeff. Not to worry. I'm sure Congress will relieve you of it soon.

Ed & Cindy. I'd happily lend the $24,000,000,000 we saved on the AIG bailout to CA if they would muzzle the nation's Mother-In-Law Pelosi.

Thor. Indeed I will.

James. Now, don't go crazy. Pay cash.

Charles. You have good insight.

Michael. If you were in a management position at Fannie Mae in 2002,3,4,5,6, you are responsible. Otherwise, I don't know why you're so defensive. I didn't mention lenders. The MBS wasn't invented by lenders. It was invented by Wall Street, the folks we're bailing out.

Scott. It just might take a bit more than the old reliable American Christmas shopper this time.

Jason. I don't know about you, but I have a hard time wrapping my brain around $61,000,000,000.

Kris. Mine wallat is fatter. I emptied the change from my pockets yesterday.

Frank & Jodi. Yes, I do. However, I've never met a buyer who did.

Mike. $80. Thanks for pointing that out.

call me crazy, but this is the kind of thing we need to pay attention to; from the Wash Post today:

In touting the deal, Wells Fargo executives said they did not need money from the Federal Deposit Insurance Corp., which had agreed to limit Citigroup's losses on a portfolio of Wachovia's most troubled loans.

"This agreement won't require even a penny from the FDIC," Wells Fargo chairman Richard Kovacevich said.

But experts in tax law said the Wells Fargo deal actually was likely to be more expensive for the government. Losses on Wachovia's portfolio of bad loans would have been absorbed by the FDIC, which is funded by the banking industry. Under the tax law change, those losses instead will allow Wells Fargo to reduce its taxable income.

"They said they're doing it without federal assistance, but in reality they are doing it with federal assistance. It's just tax assistance," said Robert Willens, an expert on tax accounting who runs a firm of the same name...."

Which sounds better now, Citi or Wells???

OCT

2008

I cannot believe al of this nonsense and have to agree with the sign I saw during the Wall Street protest last week telling them all to JUMP!

I am sooooo excited about saving this money. It almost makes up for the fact that the $700,000,000,000 bail out bill actually was well over $800,000,000,000. But then, what is an extra $billion or so?

OCT

2008

It really irritates me when people like you make it sound as if the taxpayers were simply giving this money away. The Government gets a 79.9% stake in the company, the loan is secured by all of the assets of AIG, and the interest rate is 8.5% over LIBOR, a VERY high rate. If AIG were forced to liquidate their assets in a fire sale, this would have had a disastrous affect on the entire financial and insurance industry.

Study the details before making future posts like this!!!!

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Lenn Harley, Real Estate Broker, Virginia & Maryland

Leesburg, VA

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Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Address: Lovettsville, Fairfax, Arlington, Alexandria, Stafford, Woodbridge, King George, Fredericksburg, Leesburg in VA., Rockville, Laurel, Columbia, Baltimore, Waldorf, Frederick, Eastern Shore, Bowie, Harford, Annapolis in MD. , Maryland, Virginia

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Maryland and Virginia real estate agents and brokers serving buyers and sellers with experience. Search listings in Maryland and Northern Virginia and get daily updates of new homes for sale by e-mail. Contact Lenn for a tour of homes. REALTORS available every day for home tours. Homefinders network of experienced agents and brokers includes new home specialists, resale specialists and luxury home experts. We can help you with your home buying needs. Homefinders offers discounted 5% listings for Maryland, Northern Virginia home owners. Experienced agents helping buyers and sellers in the Washington Metro area since 1985.

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