Tuesday, January 26, 2010
TIMMY PLAYS BAILOUT JUMANJI
BANZAI7 NEWS--Here are excerpts from an email sent to Tim Geithner by a New York Fed official at 3:18 in the morning on Sept. 16, 2008, one day after the NY Fed ordered Lehman Brother to file for bankruptcy, interlineated with BANZAI7 commentary.
Re: “Systematic Impact of AIG and Lehman Failure,’’
“Larger surprise factor than Lehman….
[WB7: Lehman's bankruptcy turned out to be a much bigger surprise than they expected. We all know what happened next.]
“Occurs on the back of Lehman bankruptcy, market currently unsure of their positions and functioning is being tested…’’
["Holy shit, I think we just rolled the Jumanji dice."]
“AIG derivatives book more complex than Lehman”
[It was bigger but equally as inexplicable and complex as Lehman's box of toxic spaghetti. ]
“Bankruptcy of AIG CP has significant contagion potential…”
[Bankruptcy of AIG will almost certainly bring down Goldman Sachs and foreign banks]
“AIG would fail to perform on annuities and stable value wraps; latter drives asset sales and breaking-of-the buck for money funds.”
[The best strategy is to make sure your giant 2big2fail tentacles are touching everything in the system. Hey, that sounds like Goldman Sachs.]