Saturday, December 26, 2009, 12:05PM ET - U.S. Markets Closed.
Bailout central. Bailout nation. The United States of Bailout.
Take your pick of the above to describe the state of affairs in America, after the government's latest move to keep AIG from going under and widespread expectations of similar treatment ahead for the "big three" automakers.
While the fate of GM, Ford and Chrysler remain (officially) undecided at this juncture, the government today reiterated its stance that AIG is "too big to fail."
What started as an $85 billion loan in mid-September is now a $150 billion package of support for the ailing insurer, which reported a whopping third-quarter loss of $3.42 per share Monday morning.
The latest government package features:
As Henry and I discuss in the accompanying video, the concern is that this latest bailout won't be the last for AIG, and why are AIG shareholders still benefiting from taxpayer funds? Also, if there's seemingly endless money for financial sector bailouts, why shouldn't automakers (or anybody else) expect the same kid-glove treatment?
Will we, the american people, ever finally rise up against these government scum and say enough is enough? Or will it take a complete collapse of our currency and an inflationary depression? Or if and when whe do have a collapse, will we simply sit back and let the very system that caused it (the federal reserve and our funny money system) take over and try to portray themselves as saviours? This is insane. The Fed won't even let Bloomberg check the books.
Why government has to do so much to AIG? Why just do a tax cut to boost the enconomy? All these bailout will lead to corruption when we had a centralized government trying to reallocate wealth. Did the history show us this already?
Beware, the AIG bailout is not really an IAG bailout, IT IS A BAILOUT FOR CREDIT SWAP DERIVATIVES, that were negotiated OTC without government supervision as a big credit risk. Institutions or persons that bought the speculative CSD should suffer the losses and not the tax payer !!!!! Why should the Treasury be giving money to AIG to indirectly cover the losses of the holders of Credit Swap Derivatives ???? THE TREASURY IS PROTECTING AND COVERING THE GREED AND ABUSE OF A FEW WHO DECIDED TO TAKE A HIGH RISK... Stop this abuse, stop giving our money away to cover the speculators.
We are bailing out Wall Street because the financial sector now constitutes more than 20% of American GDP and manufacturing only represents about 12%. America is addicted to the debt and asset shuffling of Wall Street and has largely lost its ability to manufacture products that our trading partners want.
This Tech Ticker is the best part of Yahoo Finance. I really love it. These guys are obviously very progressive (re: libertarian) in their thinking which is refreshing. Thank you Yahoo!
Good ol' Hank, he takes care of his "buddies" at the expense of the American people and lets the Auto Industry fend for it's self! What would happen if the Auto Industry "dried up" how many people would that effect and what would this do to our economy and for the world economy? Thank God Hank Paulson is on the out we couldn't stand any more of his financial irresponsibilities.
A bad "investment" is a bad "investment". It's time to cut your loses. When all this bailout talk stated, I said vote it down and hunt them down. I still think that's the way to go.
It will get worse, before it gets better as with most problems in life. There has to be a solution that will work, even if it takes time. We need someone who will find and enforce a solution that will be good for the people as a whole, not just those who stand to make, or lose, a substantial amount of money. The actions of the past are just that, in the past. Lets move forward. We need a hero...
AL CAPONE WAS A HERO IN HIS TIME ROB FROM RICH AN GAVE IT TO THE POOR HE WAS A GOOD GUY COMPARE TO THOSE CEO OF TODAY......
Ho 4:6 ¶ My people are destroyed for lack of knowledge: because thou hast rejected knowledge, I will also reject thee.
Will some constitutional scholar please state if government investment in private industry, with tax payer dollars, is constitutional. I don't believe it is. We are witnessing a venture down an extremely dangerous path. What else will the government take over without constitutional authority. Sure, they claim it is an investment that will give a return to the taxpayers. The problem is that the return will never reach my pocket. Meanwhile, CEOs will continue to have lavish parties, under the guise of 'necessary' business meetings, using our money. Where is the outrage? What can we do? We are more than likely in the throw of death for our democracy. Aperfect example of "Absolute power corrupting absolutely." And now, we have an inexperienced blowhard for a president who will most likely exacerbate the problems we have with judgements guided by people leaning so far left that they nearly fall to the ground.
now I am paying twice . Once as a taxpayer now as a customer. They just raised my car insurance almost 50% what nerve . Take it from their stockholders or from the crooks they had running their company. Not me .I am looking for another car ins company as fast as I can and I hope everyone else does also.!!!!!!!!!!!!!! I DO NOT WANT TO BAIL OUT THIS COMPANY GIVE ME A SHARE OF THE BAIL OUT MONEY AND LET ME USE IT TO LIVE ON NOT THEM.
Bailout after bailout after bailout after bailout -- but yet the electorate sent the same f-ing bums back to Washington. We're here to rot folks -- to the benefit of the rich. Welcome to the Socialist Corporate States of the Formerly United.
I would like to know who is going to bail out the bail outers? All this cash needs to come from somewhere.If I write bad checks I go to jail. If I don't pay my bills I loose my house and car. What makes these greedy fools any better than I?
Let the big 3 fail. There is a reason a haven't bought a US vehicle in 30 years. The price has never been the problem, it the lack of a good product. If there was no value to me buying one why is there some value in bailing out these poorly run companies. Let the Union buy them.
Does our government really believe that pain should be avoided? If you put your hand into a fire, you get burned. The pain reminds you. I am sick of our goverment (Dems and Reps) running to Corporate America like Mother trying to "kiss it and make it better". GM is on the brink because they make products that nobody wants to buy. The financial firms that are in trouble are there because they made bad loans or bought mortgage backed securities based on those bad loans. Our economy is cyclical. Let the cycle run it's course. This is capitalism's way of pruning the heard. Does it hurt? Yes! Will it get better? Yes! Obama can't fix it and neither can Congress. They have no discipline when it comes to spending. If I want to be a Socialist then I'll move to Denmark or Holland!
The American people are to blame for GM/Auto industry decline- they are mesmerized by the illusion that foreign cars are somehow better and dont give US cars a chance.. After 50 years in America, the Asian cars still look like bugs, beetles and turtles and are deathtraps in an accident. Blame Carter & Clinton for letting the Asian auto companies into the US, they should have been banned. I still own six GM cars and proud of it, I have a 1955 GMC truck, 1983 Olds, 1998 Pontiac, and newer ones, all running and looking great and SAFE !!!
We should just give them the $700B an call t a day. it will come to that. Bail-out, Bailout... what does the government tell the unemployed? you're worstless that what they say to us.. when companies get funds that help them sta afloat and add more green to there pockets.
GREED IS GOOD... ESPECIALLY WHEN THE GOVERNMENT WON'T ALLOW YOU TO FAIL !!!! .... GORDON GEKKO. "ITS THE END OF THE WORLD AS WE KNOW IT"...ITS THE END OF THE DOLLAR AS WE KNOW IT".... "I FEEL FINE!"
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JOHN - Monday November 10, 2008 12:30PM EST
I agree, LET AIG FAIL!! That is what capitalism is all about. If your business fails, it tells other people "don't do what tey did". In other words failure is just as big a part of capitalism as success. We cannot have balance in our economy untill we stop socailizing loss while we privitize gains.