While there has been a lot of outrage over taxpayer money being used to fund $165 million in bonuses paid out to American International Group (AIG) executives propagated by the media, Fox Business "Happy Hour" co-host Cody Willard suggested the bailout money is going to something far worse - terrorism, specifically al-Qaida.
On March 18, The Wall Street Journal reported that some of the money the U.S. government paid out to AIG might be benefiting hedge funds that bet on a failing housing market. According to the report, investment banks like Goldman Sachs (NYSE:GS) and Deutsche Bank (NYSE:DB) sold financial instruments to hedge funds betting defaults would increase.
"AIG bailout funds terrorism," Willard said. "This is what it's all about guys, it's the most politically well-connected. AIG aid is not going just to AIG shareholders, but more of the point is that it's going to Goldman Sachs, Deutsche Bank and these other banks, whose customers are yes - these giant hedge funds."
Willard alleged the link between terrorism and the AIG bailout is the money that went to Goldman Sachs and Deutsche Bank connected to hedge funds, which are invested in heavily by sovereign wealth funds.
"And who invests in the giant hedge funds? Sovereign wealth funds that also fund terrorism," Willard added. "So, if your rep voted for TARP, TALP, the stimulus package from last year or this year or any of these other corporate welfare bailouts - they're directly responsible for redistributing your money to al-Qaida."
According to a 2008 Wall Street Journal report, Saudi Arabia, Kuwait, Qatar, Oman, the United Arab Emirates, Libya and Algeria have at least $25 billion invested in sovereign wealth in various places around the world.
The federal government propping up AIG started back in September 2008 with an initial $85 billion. Several other loans were made to AIG and by the end of 2008 the federal government lent a total of $150 billion to AIG. The taxpayers have an 80-percent stake in the insurance giant.
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Jeff... Unfortunately
March 19, 2009 - 12:30 ET by bigtimerJeff...
Unfortunately this is all being ignored by the msm and a heck of a lot of people, and it shouldn't be...I find it sad that this bull over the AIG bonuses is over-shadowing the question of just where all our tax dollars went to in the foreign banks....I have heard others say this is one of the real reasons for all of this deflection with the bonus pay.
The majority of people never wake up until it is too late and hits them personally, one way or the other.
Jeff...
March 19, 2009 - 12:50 ET by dborschjr68Thanks so much for pointing this out!
Great article. I hope this catches on like a spark into a raging firestorm of true public outrage.
Oh, yeah, according to the State of Missouri, I am officially to be considered a "domestic terrorist". (ala Glenn Beck radio program, today, 19 Mar 09)
Any other "domestic terrorists" on NB?
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To the MSM: It has been said that, "The pen is mightier than the sword". So I'll tell ya what- how's about you hold onto a pen and see if it stops me from slapping your face. I'm just sayin'...
Hi dbor... As to your
March 19, 2009 - 12:59 ET by bigtimerHi dbor...
As to your last paragrahh...I also heard this yesterday...just commented about that myself on another thread somwhere earlier.
They will stop at nothing to stifle our free speech, even with a bumper sticker no less...talk about intimidation!
Infuriating!
Our freedoms aren't going to be free anymore...bad enough what the govt. has already done...now they are working at break-neck speed.
People are bound to revolt...in huge numbers!
"According to the report,
March 19, 2009 - 17:40 ET by jdhawk"According to the report, investment banks like Goldman Sachs (NYSE:GS) and Deutsche Bank (NYSE:DB) sold financial instruments to hedge funds betting defaults would increase."
Huh? What is the author talking about? What exactly are the "financial instruments" that were supposedly sold to hedge funds. Does the author even know what a hedge fund is?
At its most basic, a hedge fund is an unregulated means to invest in securities. It is a high risk high return vehicle that only high net worth people are allowed to invest in. There are no specific "financial instruments" to be sold to a hedge fund. A typical trader at a hedge fund or where ever makes his or her trades directly with the exchange where that security is traded as opposed to a retail broker that then typically sells its order book to third parties that make the trades that the retail customers wants.
Nevertheless, hedge funds typically bet the market, a group of securities or an invididual security both long and short. While this practice is somewhat alien in the common stock world it is reguarly done in the futures and forex markets. In fact, those markets would not exist with out someone on each "side" of the trade - that is long and short.
By the way, if betting a security short is supporting terrorism, count me among those supporting terrorism. For example, today the common stock market was down. I day traded an ETF that bets a group of financial stocks short. After over a week of the financial stocks going up, some as much as 50% or more, it was time they pulled back a little. I bet my capital every day in plays like this. While I am certainly not what you call an investor in the traditional sense, my actions and thousands like me provide liquidity to the markets. So that people that hold securities for long periods can easily move in and out of a given security while obtaining a good price for same.
The author seems to be stringing together unrelated "facts" into a far fetched BS story. The author is a stupid liberal that doesn't know what he is talking about.
By the way, I am very disappointed in Fox Business News. They are few conservatives among its commentators. CNBC, believe it or not, it far better at delivering "balanced" financial news reporting.