Tuesday, August 11, 2009

Glenn Beck and the Black Helicopters

I listened to another installment of the Glenn Beck show at the request of one of the people I work with. This installment covered the moves by the government during the recent financial crises and asks whether the moves are:

A) Unrelated to each other,
B) A case of friends helping friends,
C) A case of companies using the government framework to make business and profits bigger, or
D) A case of banks ruling the world (thus the black helicopters)

So here is some background and the moves that were made according to Glenn Beck:

1) Treasury Secretary Henry Paulson (who was appointed by Bush) use to be CEO of Goldman Sachs
2) The decision was made to let Lehman Brothers (the biggest competitor of Goldman Sachs) and Bear Stearns (a competitor of Goldman Sachs) fail
3) The decision was made to bailout AIG with $85 billion of taxpayer money
4) One of the first things AIG did with its newly received bailout funds was to make payment in full of the amount it owed Goldman Sachs from derivative deals ($12.9 billion)
5) The government hires a Neal Kashkari (VP Goldman Sachs San Francisco office) to oversee the TARP money
6) Goldman Sachs and GE are fast tracked into being bank holding companies (they are now regulated by the Federal Reserve and not the Securities and Exchange Commission)
7) Stephen Friedman, a member of the Goldman Sachs board of Directors, also oversees the Federal Reserve
8) Treasury Secretary Timothy Geithner (who was appointed by Obama) waives conflict of interest provisions for Stephen Friedman thereby allowing him to continue working with Goldman Sachs and to increase his holdings in Goldman Sachs by 52,000 shares (at the time Beck was doing his show, this had netted Stephen at least $3 million)
9) Goldman Sachs then purchased 10% of the Chicago Climate Exchange for $23 billion and $1 billion of carbon assets (basically another form of derivative)
10) Goldman Sachs then turns around and becomes the biggest supporter of mandatory limits on carbon emissions and lobbies for cap and trade (which would then increase the value of their newly aquired holdings)
11) Goldman Sachs reports a record second quarter earnings in 2009 of $3.44 billion (helped by less competition and collecting on its investments with AIG)

Based on this information, you can make an argument that the moves are at least answer (C). I'm not to black helicopter level just yet, but I would like to see the power of the Federal Reserve be checked more than it currently is.

2 comments:

Karen Valinda said...

too much there to be unrelated or "coincidence".

Le said...

Whatever! You are just paranoid. I bet you believe that flash floods in Vegas are caused by rain. Some people will believe anything....