Bailout Recipients Fly Under The Radar While We Remain Exposed

January 30 2010

Your assets can be frozen, another reason to hold gold, media requests concerning AIG rescue blocked, China trying to adjust the heat, Bernanke reappointed, Paul Volcker reappears, foreclosures and unemployment still a concern, jump in credit default swaps, airline passenger traffic now flying low.

In the past quarter Verizon eliminated 7,413 jobs to net 222,927.

The SEC now allows money market funds to suspend redemptions, freezing your assets. That rule is designed to push inventors out of money market funds and into US Treasuries and Agency bonds. Anyone whoever had any doubts about the worth of government securities has to now be convenienced that their money should be in gold and silver assets. This is the only way to preserve wealth.

Goldman Sachs Group Inc., one of the biggest recipients of funds from the U.S. bailout of American International Group Inc., was seen by the public as favored by regulators, according to an internal Federal Reserve Bank of New York e-mail.

The public perception was a reason to reject a December 2008 media request for the names of securities purchased from banks during AIG’s rescue, according to the e-mail released yesterday. If the names of the assets were released, the banks, including Goldman Sachs, would be identified as beneficiaries, New York Fed employee Danielle Vicente wrote in the Dec. 4, 2008, e-mail to Fed counsel James Hennessy.

Public pension funds needing to boost their returns but frustrated with hedge funds and private-equity investments are turning to one of the oldest investment strategies—using borrowed money to boost performance.

The strategy calls for leveraging pension funds' safest asset—government or other high-grade bonds— while reducing exposure to stocks.

The State of Wisconsin Investment Board, which manages $78 billion, became among the first to adopt the strategy when it approved the plan Tuesday. The fund will borrow an amount equivalent to 4% of assets this year, and as much as 20% of its assets over the next three years.

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California Teachers Pension Fund $42.6 Billion Short

http://www.bloomberg.com/apps/news?pid= ... jlaf2T3tW0

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The world and particularly the US, received some bad news last week. The new purported engine of recovery, China, is trying desperately to take the intense heat out of its economy, after pouring $1.8 trillion into it over the span of just nine months. In today’s world no economy can bail out the world, as the US was once able to do.

The world occasionally can produce some surprising events and one such event was the election of Scott Brown to the Senate. A Republican winning in a Democratic state where that seat had been held by the Kennedy’s since 1953. That deprived the Democrats and those who control them a staggering blow. The Democrats now have a majority of 59 votes, which means without the help of Republicans they and the President are lame ducks on almost all issues.

The President had held off his “State of the Unionâ€