Topic: Aig Bailout

Former AIG CEO Hank Greenberg claimed that the government's takeover of AIG was unnecessary and that the company could have been saved through private financing or the Fed window. He alleged that Treasury Secretary Hank Paulson forced a bailout deal that funneled $20 billion to Goldman Sachs through the "back door." Greenberg maintains that the scenario of a total economic collapse was a "phony baloney" justification for the seizure.

Treasury Secretary Timothy Geithner's testimony before a congressional committee regarding the AIG bailout is analyzed. Representative Darrell Issa presents emails suggesting Geithner remained involved in AIG disclosure issues after leaving the New York Federal Reserve.

Senator Jim Bunning presents a comprehensive indictment of Ben Bernanke's chairmanship, citing the continuation of Alan Greenspan's "easy money" policies and the illegal purchase of mortgage securities. Bunning details the failures of bank supervision, the lack of transparency regarding toxic assets, and the "moral hazard" created by bailing out large financial institutions at the expense of ordinary Americans.

As Bernard Madoff's June 17 sentencing approaches, the hosts speculate on the location of the missing $50 billion. They suggest a "hustle" where investors were insured by AIG, which was subsequently bailed out by taxpayers, effectively covering the Ponzi scheme's losses with public funds. Curry predicts the eventual creation of an international banker's court to handle such financial crimes.

Public outrage over $165 million in bonuses paid to AIG executives despite government bailouts is highlighted. The hosts discuss the "Summer of Rage" meme, suggesting that the government may actually want to provoke rioting as a pretext for military intervention or the use of detention camps.

Bloomberg reports reveal that AIG bailout funds were funneled to major international banks, including Goldman Sachs, Deutsche Bank, and Societe Generale. Amidst the global financial instability, Kazakhstan has proposed a new world currency called the "Acmetal," while other groups advocate for a "Terra" trade reference currency. The hosts view these as attempts to move away from the U.S. dollar's dominance.