Fed decides to Bail out AIG

[Hangtime]

yup. when daddy day trader has to eat the family dog we'll get some action.

You betcha!

[Ripsnort]

Smart move by the feds, speaking long term.

[Elfie]

Smart move by the feds, speaking long term.

Where is the money coming from to pay for this though?

[Baitman]

Don't hate me for this one


If the government keeps bailing out large corporations by buying them isn't this how communism starts.

[Hangtime]

"mom! bernanke is being a dick!!"

who is that guy.. cripes; he just made the fed the biggest investment share holder on wall street.

must be a haaavard boy.

*sigh*

Where is the money coming from to pay for this though?

Well, this appointee.. the guy that just buried us in the last 6 months with what..? 500 billion?.. has a theory. It's why they hired him..:

Bernanke gave a speech about deflation.[13] In that speech, he mentioned that the government in a fiat money system owns the physical means of creating money. Control of the means of production for money implies that the government can always avoid deflation by simply issuing more money. (He referred to a statement made by Milton Friedman about using a "helicopter drop" of money into the economy to fight deflation.) Bernanke's critics have since referred to him as "Helicopter Ben" or to his "helicopter printing press". In a footnote to his speech, Bernanke noted that "people know that inflation erodes the real value of the government's debt and, therefore, that it is in the interest of the government to create some inflation.

http://en.wikipedia.org/wiki/Ben_Bernanke

Helicopter Ben...  ?

we are sooooooo screwed.

[bj229r]

And the private sector passed on making loans to AIG because of?

If those "resources" could carry it they would be lining up at the door.

shamus

Lol who has 85 billion dollars to toss out--aside from it being a loan, there are suppposed to be strings attached. (AIG has 74 MILLION policies worldwide, some 175 thousand employees, it was decided to give them time enough to liquidate some assets)

[alskahawk]

Don't hate me for this one


If the government keeps bailing out large corporations by buying them isn't this how communism starts.

 Nah we'll be broke before that.

[Torque]

the neocons... are making socialism hip again.

[john9001]

AIG's CEO has been fired, the money is a 24 month loan, the govt got 80 interest in AIG, rumor is that because AIG interests are world wide foreign govt/banks put some of the money in the pot. Jobs were saved, stock markets in other countries are up , the world is not coming to a end.

sometimes you have to fix the problem instead of just crying about it. 

[Bodhi]

85 Billion to AIG.

Stupid, idiotic morons...

I can't fathom just what in hell it is they plan to fund this with short of turning on the presses down in the treasury dept's basement.

Bonehaids.

I said this in another thread, and I'll say it again.  AIG's collapse would have been felt far outside the realm of the US.  If someone did not step up, you can be sure that the market's would most definitely have tanked worse than they the little hiccup of Monday. 

As it was already mentioned, AIG is not being "given" the money, but instead is receiving a government backed loan to create the time for them to sell off assets to more stable firms.  While I do not agree with "Government Bailouts", I do feel that this is the right course of action in this case.  The good far out ways the bad in this situation.  In the end though, the corporate officers that allowed this nonsense to happen in the first place definitely need some form of punishment if it is found they were cooking the boks or anything else that is even remotely illegal.

[Nilsen]

AIG's CEO has been fired, the money is a 24 month loan, the govt got 80 interest in AIG, rumor is that because AIG interests are world wide foreign govt/banks put some of the money in the pot. Jobs were saved, stock markets in other countries are up , the world is not coming to a end.

sometimes you have to fix the problem instead of just crying about it. 

Smart move by the feds, speaking long term.

[Hap]

AIG's CEO has been fired

John, googled the firing of AIG's CEO.  Really can't find much.  Passing reference from June of this year.  You have links reporting firings over their insolvency?

[lazs2]

I think some people should go to jail but..  they are not alone.. the fed is bailing out most of these people because.. they are complicit in the problem in the first place...

Forcing these companies to make bad loans to low income and minorities was not a good way to go.. the government should not be involved at all in the loan companies save when it gets to court or at most.. putting a cap on interest.

Since there is no consequences for doing business badly..the companies will continue to do so..  since there is no consequence for making the companies give out bad low income and minority loans..  the government will continue to force it...

lazs

[john9001]

hap, the CEO "was allowed to resign".

[Maniac]

Jobs were saved, stock markets in other countries are up , the world is not coming to a end.

Stock markets in alot of countries in Europe are crashing atm.