Feds Save AIG Insurance

Where are the free marketers now? What ought to be done to the heads of these companies who made their billions in personal wealth while creating this mess.

The Post notes that AIG manages the seventh largest set of assets in the world. Would this have gone under and who would have lost?

My main question is, since the federal government owns 80% of AIG, should it get that much in profit when the company is turned around? When the federal government turns around to sell its share of AIG in the future, should it get more than the $85 billion plus it has put in? After all, other lending insitutions charge for the use of their money. And, we the tax payers get stuck when there is a loss so why shouldn’t we win if there is a gain!

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9 comments so far

  1. Gary on

    I think this signifies somthing very different. Everything is pretty much ripe for a major collapse of the dollar. Boy who would have thought it would have come this quick. The fed can keep buying these instituions .. but its essentially buying wortless companies with worthless fiat currency.

    I feel really sorry for average americans who are the ones who will suffer most.

    I can only imagine that the fed will inflate away all this debt. that will be very painful.

  2. lizzygram on

    IT IS MY OPINION THAT THE FEDERAL GOVERNMENT SHOULDN’T HAVE BAILED AIG OUT AT ALL.. IT WAS A PRIVATELY OWNED COMPANY, WITH A CEO THAT WAS APPOINTED OR ELECTED TO RUN THAT COMPANY. IF HE FAILED THAT COMPANY WITH HIS GREED FOR HIS OWN PERSONAL WEALTH IS THERE PROBLEM. WE THE TAXPAYERS IN THIS COUNTRY IS GETTING RAPED BY OUR GOVERNMENT…..MORE AND MORE EVERYDAY.
    IT IS MY OPINION, THAT OUR GOVERNMENT DID THIS OUT OF FEAR. FEAR OF WHAT..YOU MIGHT ASK. THE FEAR THAT IF AIG WENT UNDER…IT WOULD BE THE END OF THE UNITED STATES ALL TOGETHER AS WE HAVE KNOWN IT FOR YEARS NOW. I AM TALKING ABOUT JAPAN OR CHINA STEPPING IN AND TAKING OVER. ON MARCH 4, 2007 THE UNITED STATES OWES JAPAN 644 BILLION DOLLARS, OWES CHINA 350 BILLION DOLLARS, AND OWES THE UNITED KINGDOM 239 BILLION DOLLARS. GOD KNOWS WHAT THE UNITED STATES OWES TO THEM IN DEBTS ON SEPT. 17, 2008 IS?? AND REALLY I AM SCARED ENOUGH THAT I AM NOT SURE THAT I WANT TO KNOW WHAT IT IS…
    WE CITIZENS AND TAXPAYERS OF THIS COUNTRY ALSO VOTES EVERY 4 YEARS FOR OUR CEO (PRESIDENT) AND HE IS SCREWING US LIKE ALL THE CEO’S OF THE BIG FINANCIAL INSTITUTIONS GOING UNDER FOR HIS SELF WORTH TOO. SO WHY WORRY ABOUT THOSE COMPANIES CEO’S ….YOU NEED TO WORRY ABOUT THE CEO THAT WE PUT INTO OFFICE.
    I LEARNED THIS ONE LAST NIGHT ON THE CNN NEWS TOO WHICH TURNED MY STOMACH…OUR TWO CANIDATES RUNNING FOR THE PRESIDENCY?? BOTH RECEIVED CONTRIBUTIONS FROM FREDDY MAC AND FANNIE MAE INSTITUTIONS: OBAMA $126,000 AND MC CAIN $22,000.
    AND HERE WE ARE PAYING TO BAIL OUT BOTH THOSE FINANCIAL INSTITUTIONS. WE PAY …THEY BOTH PUT IT IN THEIR CHECKBOOKS. DOES THIS LOOK RIGHT TO YOU??
    I FOUND A WEB SITE THAT YOU MIGHT WANT TO LOOK AT … I JUST FOUND IT THIS MORNING MYSELF AND I HAVEN’T BEEN ABLE TO GET ON IT AND LOOK AROUND BUT BELIEVE ME I AM GOING TOO…FINANCIAL MANAGEMENT SERVICE A BUREAU OF THE UNITED STATES DEPARTMENT OF THE TREASURY.
    SCARED ??? YOU ARE NOT ALONE !!!!!

  3. bla2222 on

    I agree with you Gary that the public will end up losing. The idea of the fed inflating this away is intriguing. They have been so “watchful” over inflation over the years. However, the whole inflation statistic is questionable because it leaves out food and energy costs.

  4. bla2222 on

    I agree Lizzie that the whole political structure rots from inside with campaign contributions and close ties between Freddie, Fannie and the candidates one part of a much larger problem.

  5. Gary on

    Hey Lizzie, the problem with not bailing out a central pillar of the US economic structure is that all confidence in the dollar would be lost. All confidence is US institutions would be lost.

    Quite what that would have delivered practically, I don’t know. But it would be bad. And even though the fed has basically, well sort of, nationalised AIG, even though the fed isn’t actually a federal institution, the other world economies now have to support this by pumping more money into the markets to support the dollars value.

    Today is another day where the inevitable is not faced.

    Its all about belief with any fiat currency, the fed has to keep bailing to keep the belief going.

    It’s getting harder for the world to believe, but I am sure everyone is trying their best.

    bla2222, inflating away debt is a great way to go when you control the printing presses. Devalue your debt and then print the money to pay for it. But very painful for every American who does not own a $$$ printing press

  6. lizzygram on

    I AGREE. THE FEDS ARE USING NOTHING MORE THAN MONOPOLY MONEY..NOW, I AM SURE YOU HAVE SOME, SOMEWHERES IN YOUR POSSESSION..LOL
    MAYBE WE SHOULD START USING IT AND CONTRIBUTE ALITTLE MORE TO THEIR PROBLEM. WOULDN’T YOU SAY??

  7. Gary on

    :))

    Yes for sure, + I have a nice laser printer and a guillotine. Give me about 3 hours and I should have paid off my mortgage.

  8. bla2222 on

    I have another suggestion for that guillotine of yours Gary.

  9. Gary on

    Is that revolution I can smell bla2222 ?


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