Monday, November 10, 2008

More High Class Hustles

Three new economic "events" occurred today. All of these events benefit the ultra-rich at the expense of working-class folk.

The US Treasury has given ailing credit card company American Express the status of bank holding company. This allows the corporation to take advantage of the Troubled Asset Relief Program (TARP). American Express can also issue government guaranteed bonds.1

Mortgage bundler Fannie Mae announced that it is likely to require more money in its bailout. The Treasury originally agreed to a $100 Billion plan, but corporate losses have been greater than predicted. FME has an estimated $880 Billion in outstanding debt.2

Insurance giant AIG is receiving additional government assistance. The tab for this bailout has expanded from $80 Billion to more than $150 Billion. AIG has had significant investments in credit default swaps.3


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