Well as expected Dennis Kneale lived up to expectations tonight. We knew he would not let me get a word in edge wise, but it was worth a shot. This how our mighty media has turned out, just a bunch of loud mouthed buffoons who have opinions versus serving the public by delivering actual facts.
Well, who would have thought that we would be invited to go onto Dennis Kneale show tonight. At first we thought it was a joke, but apparently it is not and his producer really wanted me on.
We have a sneaking suspicion that it had something to do with calling him, um, well a super dip shit. We do appreciate his energy and optimism, but there is a significant difference between being optimistic and being completely wrong.
We hope it will be a productive dialog, but past history suggests that it might just be a screaming match or worse just him trying to slap me. Either way the facts are on our side. Let you know how it all pans out!
It appears that AIG has more credit default swap, CDS, trouble ahead. According to Bloomberg the firm has exposure to $192 Billion worth of European bank CDS which may prove to be a problem. This is a material problem because, according to Bloomberg and AIG statements, the valuation declines on credit-default swaps sold to European banks could have a “material adverse effect” on the company’s results. We all know what happened last fall with these things, but it is unclear what could happen this year.
Unfortunately, this plays into our estimates of a severe downturn in equities beginning now and lasting to the end of the year. However, the firm did say that, “The insurer said it doesn’t expect it will have to make payments under contractual agreements tied to the regulatory relief swaps. Most of the swaps will be terminated over the next 12 months, AIG said.”
We will see what happens, but it is clear that there could be major problems ahead. Just imagine $192 billion or even 20% of these contracts blowing up. We saw what $80 billion in bad bets did to the firm, drove it to bankruptcy and $180 billion had to be infused through the government. This has a lot of potential to do bad things to the firm and an already fragile market.
Well, we were wrong he got the maximum. I hope he finds all of the same bliss in prison as he created over the last 40 years. Now, on to the idiots who brought down the system!
We have thought for a long time that markets were being manipulated by the government since last fall. If you recall the market kept bouncing off of 8,000 last fall when they should have gone through that level very easily. We know the Fed is manipulating the bond market through quantitative easing, but this admission from a CNBC contributor is a classic slip. It is safe to assume this guy will NEVER be on CNBC again, period. Cheerleaders hate people telling the truth against our beloved Obama, it is a 2:22 in the video below. Thanks to ZeroHedge.com.
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