$85 billion bailout of AIG by Fed Reserve?
On CCN right now.
:tdown:
Consolidation of assets my friends… i smiled when i saw the headlines… as much as it sucks, at least it makes perfect sense.
Some good points made here:
http://www.cnn.com/2008/LIVING/personal/09/17/lkl.suze.orman/index.html?iref=mpstoryview
So who is bailing them out?
CCN reported the Federal Reserve was bailing them out and no more than one minute later they said the Federal Govt was bailing them out?
Which is it CNN?
Did anyone from CNN go to college?
For that matter did anyone from AIG go to college.
This world is full of a bunch of retards with college degrees.
I don’t mean to sound anti-college but did you ever notice how many problems people with degrees cause?
The Federal Reserve is a government entity…
So does this bailout of 85 billion dollars that added to our debt hurt our dollar even more now?
$85 billion loan from the govt, and 2 years to pay it back.I’d like to see how this will pan out. If they don’t pay it back in 2 yrs, does AIG become govt. property? scary.
:picard:
^That was a shot at some smug a-holes on here.
What if they need $85 billion next year?
When does it end or should they be given endless money?
From what I’ve read AIG is still going away. The 85 billion loan at 11% interest basically allows them to sell off the company in an orderly fashion that prevents the world markets from the chaos that an AIG firesale would have caused.
As the company is sold off the federal reserve get their money back with interest.
Firesale to China so they can go back to where they came from?
Really glad HSBC isn’t buying up any of this crap. Luckily our policy decisions during the peak of subprime were made by a bunch of stingy Asian dudes.
STFU…
the American people have no claim to the $85M that the FED gave to AIG. The FED is a private bank for the banks and while the US GOV may appoint key individuals and have a stake in the FED, the FED makes independent decisions.
Didn’t Tony Soprano basically offer the same “bailout” to the guy with the sporting goods store?
“Here’s a loan at a high interest rate to keep you from going bust tomorrow. You’ll never get out from under this loan though so as you sell off everything in your store I’ll just take my money back plus interest.”
I wonder if some guys at the Federal Reserve are hooking themselves up with sweet insurance policies and other AIG swag that “fell off a trucK” somewhere.
Wait… so the government loaned them this money to stay in business a bit longer but if they sell off all their assets, will they be able to pay it off or no? What if they do not have enough money, are they protected and the US loses out on this loan?
You’re kidding right?
In the most far-reaching intervention into the private sector ever for the Federal Reserve, the government stepped in Tuesday to rescue American International Group Inc. with an $85 billion injection of taxpayer money. Under the deal, the government will get a 79.9 percent stake in one of the world’s largest insurers and the right to remove senior management.
It may not take long now.
you are only restating the point rebutted… not providing any further counter-point… just an FYI.
obviously it would be positioned publicly as a government bailout on behalf of the FED… but the FED is still not owned by the American people. The GOV has a stake, but the FED is still very much a private entity or at best at arm’s length from the GOV.