Fed to Loan A.I.G. $85 Billion in Rescue

[pickel]

http://www.nytimes.com/2008/09/17/bu...hp&oref=slogin

With ALL the money being given to these crooks, why don't they get real and just pay off the homes loans and the crisis would be over. Screw he little guy. Keep the Big Buck bastards in their country club and keep their whores out of the soup kitchen.

[The Real Bingo]

What pisses me off is AIG rejected private equity loans. Obviously this pisses me off, too, but they could've gotten the money - or some of it - without dipping into the community chest. Of course, a failure of AIG would've been disastrous...but hey, I say let it run its course. One thing that can be said is that at least the government displayed some discretion by not bailing out Merrill Lynch and/or Lehman Brothers.

$85 billion loan...shit should be taken out of the pockets of the executives with 20% interest just for the inconvenience.

[MTAtech]

Great, more of the Fed’s portfolio tied up in loans backed by dubious collateral.

This isn't capitalism. It's an example of the new rule of investment banking -- heads they win, tails the taxpayers lose.

[tony_j15]

from the ol' conspiracy POV, having the government control all these companies (both directly and through loans) is pretty scary, no?

[MegalosSkylaki]

from the ol' conspiracy POV, having the government control all these companies (both directly and through loans) is pretty scary, no?

-- especially when the theory is true.

What really is scary is the irony of what pickel said about paying off the home owners who are "upside down" on their mortgages would at least help some people who are not working on their $20th Million.

But it's the one thing that wasn't and won't be considered by the Gang of 10,000.

DOOOOG

Err...Gov't will get markers on 80% of AIG's "equity". Huh?
Maybe the Gov't doesn't expect to be paid as they've been paid already

[outlaw2001it]

If they didn't loan the money smaller banks around the world would have collapsed, making things a lot worse than what they already are. These guys got their hand in cookie jars around the world, and we are just now finding out about it. They repacked loans (just like F. Mac/Mae did), and now it's biting us in the a$$. The ECB put €50 billion into their system to stabalize the system. The worst is yet to come.

[surreal]

85 billion at 11% interest

[MTAtech]

I love watching business types who call Social Security 'socialism' defend the government bailing out their investment companies.

[outlaw2001it]

I'm not sure about the 11% interest, but the Fed has 80% of their stake for the next two years.

[MTAtech]

Capitalism is dead

[tony_j15]

Think about this. Our government has just decided -- without asking any of us, including our Congressional representatives -- that $85 billion more of our money should be used to cover the actions of (and pardon the unsophisticated language here) stupid, greedy, criminal people. Stupid, because they didn't have a clue that what they were doing would have such negative consequences. Greedy, because all they could see were short term dollar signs in front of their eyes. Criminal, because they just robbed you and me of $85 billion dollars by holding a "we're too big to fail" gun to the head of the US government.

[surreal]

Honestly I think it's to keep all the other businesses that depend on them from collapsing too.
I have a feeling it wont work though.

Where's the government getting all of these trillions of dollars we are lending anyway? Perhaps borrowed from the Chinese government?

[outlaw2001it]

€urocentric Blog: So, the Markets Can't Take Care of Themselves? - Eurocentric - Silvia Wadhwa - CNBC.com

[surreal]

€urocentric Blog: So, the Markets Can't Take Care of Themselves? - Eurocentric - Silvia Wadhwa - CNBC.com

Today on NPR

September 17, 2008 · The bankruptcy of financial services giant Lehman Brothers and the 500-point drop in the stock market on Sept. 15 have sent shockwaves through the financial community. Law professor Michael Greenberg explains how the recent turmoil on Wall Street could trigger a domino effect for economies around the world.

Greenberger is the director of the Center for Health and Homeland Security at the University of Maryland and the principal deputy associate attorney general at the Justice Department.

Greenberger gives a very clear and interesting explanation of what's going on, you might enjoy it.

[outlaw2001it]

I've been reading about 20 different points of view on this, and they all sum it up about the same. The real killer was AIG. Nobody was expecting the Fed to pull them out until AIG stated where there assets were, and how much money was involved. I'm sure more news will keep popping up over the next few days (if not longer) about this whole financial fiasco. Stay tuned!!!

[xelnanga]

You gotta love the fact that AIG considers itself an international group and when it meets trouble, it comes to USA.

This move by the Feds will stir up some troubles. Why should the government make up for bad investment choices AIG (a private corporation) made with our tax dollars? (Because AIG is one of those companies that should never tank in the economy)

Anyhow. It is revealing that despite the Feds have given 85 billion dollars (of course, the Feds pretty much also take the 80% of the company too), the Stock market today plummeted like shit.

[outlaw2001it]

I've been tracking the stock market since the August 26, and it's gone down roughly 770+ points since then. The Dollar has also lost ground since the Fed stepped in on AIG. The worst is yet to come.

Europe and Asia see U.S. as no longer practicing what it preaches - International Herald Tribune

[The Real Bingo]

I've been tracking the stock market since the August 26, and it's gone down roughly 770+ points since then. The Dollar has also lost ground since the Fed stepped in on AIG. The worst is yet to come.

Europe and Asia see U.S. as no longer practicing what it preaches - International Herald Tribune

No surprise there. Short-term Treasuries also got hit hard.

[MTAtech]

I've been tracking the stock market since the August 26, and it's gone down roughly 770+ points since then. The Dollar has also lost ground since the Fed stepped in on AIG. The worst is yet to come.

What do you mean? The DJIA has gone down 1,000 points since Monday.

I'm glad I transfered my 401K to the fixed fund in 2006.

[outlaw2001it]

What do I mean? I mean you only counted the loses...you didn't count the gains. I say again the stock market lost 770+ points since August 26. If you want the exact figure 774 points.