Tuesday, October 26, 2010

Hidden Loss On AIG For Treasury

Following the AIG debacle outside the mainstream financial media leaves one prepared for the unpleasant truth.  AIG is losing more money than ever and Uncle Sam thinks we don't need to know:

The United States Treasury concealed $40 billion in likely taxpayer losses on the bailout of the American International Group earlier this month, when it abandoned its usual method for valuing investments, according to a report by the special inspector general for the Troubled Asset Relief Program.

This report will be quickly forgotten by a sleepwalking American public too concerned with the World Series to read any SIGTARP reports.  The Treasury Department has apparently hired its financial analysts from Enron.  The only other explanation for this deliberate mis-valuation is that they're from the government and they're here to help - help themselves to more bailout money.  Those analysts can look on the bright side if they lose their jobs, as there will be plenty of demand for their services in Greece to mis-value that country's bad debt