Top Headline Comments 03-02-09
— Gabriel Malor

I can't believe it's March.

Posted by: Gabriel Malor at 06:37 AM | Comments (82)
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AIG Bailout No. 4
— Gabriel Malor

Hold on to your butts. Tomorrow (that is, Monday), AIG is expected to announce the single largest value loss of suffered by a company in a single quarter. The announcement will be made concurrently with the announcement of AIG's latest bailout from Treasury. This will be the fourth AIG bailout.

Previously, we the taxpayer had given the ailing insurer an $85 billion line of credit for two years plus interest at LIBOR + 8.5 percentage points (AIG Bailout No. 1). That was reduced to $60 billion to be repaid over five years at LIBOR + 3 percentage points (AIG Bailout No. 3). Now it gets reduced to $25 billion credit for a term of five years plus interest at LIBOR.

We had also offered $40 billion in TARP funds (AIG Bailout No. 3) and are going to offer another $30 billion now.

We also exchanged $38 billion for some of the company's illiquid securities (AIG Bailout No. 3); they will allegedly be purchased back at some point; if not, the taxpayer takes them as is.

In exchange for all this, we are now the proud owners of equity warrants amounting to 79.9% of AIG's shares. WAF.

Guys, I don't know what to write about this stuff anymore. They're doing it; they say they have no choice but to do it; and the people who could choose otherwise (the President or Congress if they yelled loud enough) aren't inclined to do anything different.

The credit-rating agencies were included in the deal negotiation and have promised not to downgrade the AIG's debt after tomorrow's announcements. That's the whole point of the doing all this on the same day, since everyone expects the whole world to melt down (too many pensions and institutions who are required by law to only keep investments with a certain credit floor would have to bail) if the credit-rating agencies put AIG in the dumps.

Posted by: Gabriel Malor at 10:23 PM | Comments (164)
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Overnight open thread (genghis)
— Open Blog

"The future's so bright I've gotta' wear shades" (Timbuk3)

From CNN: Venezuelan El Presidente for Life Hugo Chavez orders troops to take over rice plants. Que? There must be millions upon millions of rice plants in the country. TheyÂ’re well-armed, I might add, and quite capable of defending themselves. Or am I just misreading the headline? Could be heÂ’s simply talking about adopting the new American economic system. (original format of article condensed to save pixels)

” (CNN) -- Venezuelan President Hugo Chavez has ordered troops to immediately take over rice-processing plants in his country, accusing some businesses of ignoring prices set by the government. "What are some of the sectors of the agricultural industry doing? They buy rice from producers, and they don't want to produce regulated rice," Chavez said in a televised address Saturday. "Well, I've ordered the intervention, starting right now, of all those sectors of the agricultural industry." Chavez did not say how long the takeover will last, but warned that some companies could be nationalized if they tried to interrupt supplies.

Let that last sentence soak in. How long? (Permanently) Could be Nationalized? (Could? Give me a fucking break) More:

“Since winning re-election in 2006, Chavez launched a campaign to nationalize strategic segments of Venezuela's economy, including cement companies, a steel mill and oil ventures. Last month, Venezuelans approved a Chavez-backed constitutional referendum that allows him to run for a third six-year term in 2012.”

GeezÂ…what a piker. ItÂ’s taken him two years to nationalize industries and entire sectors of VenezuelaÂ’s economy? Took us, what, a little over a month? I for one am proud that The United States of America has retaken its traditional role as a leader of nations, and I hope that others will soon follow us down the shining path to global economic recovery. When we move, we slice like a hammer and scythe. Or is it a machete? Some sort of sharp agricultural tool...it's just not coming to me right now. Eh, never mind.

Notice: Posted by permission of AceCorp LLC. Please e-mail overnight open thread tips to xgenghisx@gmail.com. Otherwise send tips to Ace.

Posted by: Open Blog at 08:14 PM | Comments (55)
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So, Uh, How's Your Day Going?
— Gabriel Malor

Howse about an open thread?

Honestly, I looked for a good Techno Hamsterdance, but there wasn't anything.

Posted by: Gabriel Malor at 12:25 PM | Comments (256)
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Nifty Gel 'Armor'
— LauraW

Imagine all the civilian applications for this stuff.

The gel, called d3O locks instantly into a solidified form when it is hit at high impact.

"When moved slowly, the molecules will slip past each other, but in a high-energy impact they will snag and lock together, becoming solid," said Richard Palmer, who invented the gel. "In doing so they absorb energy."

The original intent was to improve the performance of soldiers' helmets but is already being used in sports equipment. Gotta love military tech breakthroughs.

Picture at the link. Thanks to Man Of Substance.

UPDATE: Video below the fold. more...

Posted by: LauraW at 08:32 AM | Comments (95)
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