The Greece bailout and your money

Posted: May 17, 2010 in Washington Corruption
Tags: , , , ,

For those of you paying attention out there you know this already, but in case you didn’t I thought I would entertain you. Greece is going broke, and did you know you are getting to bail them out. Yes, really, the IMF which is 15% funded by you, the American taxpayer, is helping to bailout Greece.

Now here is where it is getting even more entertaining. A Credit Default Swap (CDS) is basically  an insurance plan for the debt in countries. Now as the risk increases, i.e. Greece gets closer to insolvency, the CDS price increases. Now the problem is, if a CDS defaults then the “insurance” effectively comes due. The companies that issue the CDSs have to pay a lot of money. Now here is the part where either blood shoots from your eyes or you want to throw something at the computer. The company issuing these CDSs is none other than…AIG! Yes, the company that we bailed out, the company that couldn’t pay off the CDSs in the subprime market, the company that took billions in taxpayer dollars is issuing insurance plans on countries like Greece that could be going bankrupt.

Oh yeah….2008 political donations and Lobbying of AIG:

Democrats: $808,054

Republicans: $425,675

Lobbying: $21,069,000

  1. sasoc says:

    Great post – this is something I have focused on directly myself (the IMF connection, drawing us into the bailout). I have written many pieces on what must be Obama’s joy that we are funding Greek socialism. You will like this in particular as it relates to your post:
    It turns the stomach, but then so does everything about this ‘administration’.

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