Tuesday, September 16, 2008

The "person" who spread the AIG loan rumor was Bernanke

Perhaps I didn't give Helicopter Ben enough credit. He's a crafty little bearded fella. Right after the markets dropped as the Fed unanimously decided to hold rates steady a rumor came out on the Bloomberg about the Fed extending a loan to AIG after all causing everything to return to normal as if the non-cut never happened.

BLOOMBERG TEXT:
Sept. 16 (Bloomberg) -- The Federal Reserve is considering
extending a ``loan package'' to American International Group
Inc., the insurer facing a cash shortage, according to a person
familiar with the negotiations.
The stance by federal regulators is a reversal from a
position they held as late as last night, and people with
knowledge of the talks are ``cautiously optimistic,'' said the
person, who declined to be identified because negotiations are
confidential.
The person gave no timetable for reaching an agreement or
estimate on how much money New York-based AIG would need. New
York Fed spokesman Andrew Williams declined to comment.

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