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“You Can’t Handle The Truth.”

Well, thank you masters of the universe.

That was quite a display. But I’m not certain we got anything more out of yesterday’s "don’t show, don’t tell" other than certainty that what we are doing now sure as hell isn’t working.

You’ll forgive me if I don’t quite buy the "look at the shiny object while we hide things under the rug" technique:

When the Federal Reserve rescued AIG in September with an original $85 billion loan that gave the government a nearly 80 percent equity stake in the company, the intention was to prevent rating agencies from further downgrading AIG.

Ratings downgrades would’ve forced AIG to pay business partners much more collateral on a range of complex financial instruments, leaving one of the world’s biggest insurers short of cash and thus technically insolvent. Insolvency could’ve triggered bank failures across the globe as the company’s lightly regulated Financial Products division had obligations from its global transactions exceeding $1 trillion.

If what we are doing is giving the car a jumpstart so Goober can drive down to the general store in Hooterville buy some shiny sign material for the super-duper big tag sale, then I think we are entitled to know that the whole fricking country is taking that risk.

Don’t you?

Christy Hardin SmithCommunity

“You Can’t Handle The Truth.”

Well, thank you masters of the universe.

That was quite a display.  But I’m not certain we got anything more out of yesterday’s "don’t show, don’t tell" other than certainty that what we are doing now sure as hell isn’t working.

You’ll forgive me if I don’t quite buy the "look at the shiny object while we hide things under the rug" technique:

When the Federal Reserve rescued AIG in September with an original $85 billion loan that gave the government a nearly 80 percent equity stake in the company, the intention was to prevent rating agencies from further downgrading AIG.

Ratings downgrades would’ve forced AIG to pay business partners much more collateral on a range of complex financial instruments, leaving one of the world’s biggest insurers short of cash and thus technically insolvent. Insolvency could’ve triggered bank failures across the globe as the company’s lightly regulated Financial Products division had obligations from its global transactions exceeding $1 trillion.

If what we are doing is giving the car a jumpstart so Goober can drive down to the general store in Hooterville buy some shiny sign material for the super-duper big tag sale, then I think we are entitled to know that the whole fricking country is taking that risk.

Don’t you?

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Christy Hardin Smith

Christy Hardin Smith

Christy is a "recovering" attorney, who earned her undergraduate degree at Smith College, in American Studies and Government, concentrating in American Foreign Policy. She then went on to graduate studies at the University of Pennsylvania in the field of political science and international relations/security studies, before attending law school at the College of Law at West Virginia University, where she was Associate Editor of the Law Review. Christy was a partner in her own firm for several years, where she practiced in a number of areas including criminal defense, child abuse and neglect representation, domestic law, civil litigation, and she was an attorney for a small municipality, before switching hats to become a state prosecutor. Christy has extensive trial experience, and has worked for years both in and out of the court system to improve the lives of at risk children.

Email: reddhedd AT firedoglake DOT com