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Post subject: US government in $85bn AIG rescue
 Posted: Sep 17, 2008 - 02:38 PM
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Member
Joined: Mar 25, 2003
Posts: 7576
Location: 221B Baker Street London
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The US government will provide an 85 billion-dollar (£47.2bn) emergency loan to rescue the huge insurer AIG, the Federal Reserve said.The bank said the US Treasury Department fully supported the decision. The Fed said a "disorderly failure" of AIG could undermine already fragile financial markets.
The government will receive an 79.9% equity stake in AIG, the Fed said.
AIG's failure could also "lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance".
"The president supports the agreement announced by the Federal Reserve," said White House spokesman Tony Fratto."These steps are taken in the interest of promoting stability in financial markets and limiting damage to the broader economy.
Thoughts?
http://money.uk.msn.com/investing/news/ ... id=9626747 |
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Post subject:
Posted: Sep 17, 2008 - 02:41 PM
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Member
Joined: Sep 18, 2004
Posts: 5199
Location: standing here shaking my head in disbelief....
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To keep bailing out these huge instituions who have behaved so recklessly, while their CEO's take home millions in retirement packages, is crazy. Unless of course they compensate me with millions of dollars. Then it makes good sense.  |
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When you try to make others look small, you only show how truly tiny your own spirit is.
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Post subject:
Posted: Sep 17, 2008 - 02:56 PM
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Member
Joined: Mar 25, 2003
Posts: 7576
Location: 221B Baker Street London
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| I just wonder how long Goverments can keep bailing out companies that go belly up.If it's not banks,like Northern Rock, its insurance companies or Airlines.Where is all this 'spare' taxpayers money coming from,..?. when we are being told, we are in a recession, and prices are going up and up, and everyday, people are having to cut back and tighten their belts. |
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Post subject:
Posted: Sep 17, 2008 - 05:42 PM
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Member
Joined: Feb 12, 2005
Posts: 9897
Location: I destroy my enemy when I make him my friend.--Abraham Lincoln
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I sometimes wish that we could shift more toward an agrarian economy. I am not suggesting giving up our technological advances, but I think that we need to stop depending on them for our sole economical structure.
I would love to see some of the old fashioned American pioneer spirit return to this country; the kind of spirit that is free and independent and self-sufficient.
I just think that too many folks have gotten into so much debt that they are looking for hand outs from the government to keep them from loosing their treasures. Perhaps, they need to stop and reevaluate their possessions and ask themselves if they are worth shipwrecking the nation to keep.
I would challenge anyone in congress to live within a budget that did not require the use of credit cards or credit of any kind. If I had to, I could feed my family for a year with 500.00. (I wonder how many folks in congress could do that.) That's just for starters. |
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Let's do it as a memorial to Joyce Mason
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Post subject:
Posted: Sep 17, 2008 - 06:17 PM
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Member
Joined: Oct 24, 2002
Posts: 8171
Location: CA
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I don't know WHAT to think anymore...I spent the whole day,
yesterday, getting my funds out of WAMU before they become
FDIC operated. Now other banks are harrassing people to give up copies of Trusts and Wills to open Trust accounts...NO WAY!!!
This patriot act BS is a way to have Govt. fingers in ALL of your affairs  |
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Nostromo |
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Post subject:
Posted: Sep 17, 2008 - 08:13 PM
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Member
Joined: Sep 18, 2005
Posts: 1898
Location: Ottawa, Canada
Status: Offline
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$85 billion over 2 years. How about 2 weeks. AIG claims to have $1 trillion dollars in assets. Question is, once you jettison the subprime and derivatives garbage, will there be $100 billion left to repay Treasury?
The U.S. government doesn't know it yet but it has just pushed the free market economy over a cliff.
And another thing ... don't you just want to drive a stake through your TV monitor when these talking heads on Wall Street start yipping about the Fed's moral obligation? How about criminal complicity? Alan Greenspan deserves to wear prison togs. I feel for Bernanke for inheriting such a load of caca do-do. Thankfully he didn't chop interest rates yesterday. Our retirement plans would be pushed back to "Freedom 95".
Wonder who'll write the book: The Death of Capitalism - How the Republicans Killed It.
N [/i] |
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"Not bad .... for a human"
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rdb |
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Post subject:
Posted: Sep 17, 2008 - 10:30 PM
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Member
Joined: Oct 13, 2005
Posts: 735
Location: Lakeland Florida
Status: Offline
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Actually, if Capitalism died, this whole world would be far better off. The "market economy" is pushed as a fix-all, but the reality on the ground is whenever a market economy is introduced to an area, (1) the top .5% of the population (yes, ONLY 1/2 of 1%) prospers greatly, while the rest do worse- usually a LOT worse (2) ecological collapse generally follows, and (3)poor people suffer and have to look to the "west" for handouts. I'm not talking about an occasional case here and there- it's been demonstrated to happen. Always. I'm aware of countries in Africa that used to export food, while the people had a subsidence economy (which I refer to as "needs plus"- people produce enough to meet their own needs, plus extra for trade or sale). These countries went to a market economy, and now they have to import their food- and not because of some sort of increase in population or ecological disaster (which happened, directly because of market-driven farming practices!!!)
We've (colleagues and I, for instance in class) had long discussions on what sort of economic system would work best. Socialism and communism have weaknesses that are also always exploited- for instance, they don't provide a leveling mechanism that keeps the "iron rule of oligarchy" from gaining a foothold. The best that I've heard put forward is a very controlled and limited capitalism- where the government acts as a check and balance to business, and business is forbidden from gaining any sort of control over government. Right now, there are NO checks and balances- this "85 Billion" bailout is just another version of corporate welfare- something that most people don't know really exists or just how bad it is (for instance, Big Oil gets subsidies on top of their obscene 11 Billion a quarter profits!!!)
So, in essence this is things as they usually are- the rich get their money and protection, and the rest of us foot THEIR bill. |
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Post subject:
Posted: Sep 17, 2008 - 11:00 PM
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Joined: Apr 14, 2004
Posts: 8413
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| Just watched Jon Stewart, so funny! The disconnect between Bush saying that the economy was going through "adjustments" and the media's apocalyptic headlines! Oh and McCain's "the fundamentals of the economy are sound"! |
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Yes we can!
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Post subject:
Posted: Sep 17, 2008 - 11:03 PM
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Member
Joined: Oct 24, 2002
Posts: 8171
Location: CA
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| Yeah..it's sound alright..a distant whining |
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Post subject:
Posted: Sep 17, 2008 - 11:12 PM
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Member
Joined: Oct 24, 2002
Posts: 3529
Location: New Jersey USA
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| greenchick wrote: | | Just watched Jon Stewart, so funny! The disconnect between Bush saying that the economy was going through "adjustments" and the media's apocalyptic headlines! Oh and McCain's "the fundamentals of the economy are sound"! |
At closing bell the Dow lost 449, the NYSE lost 353, and the S&P 500 down 57. That's some hell of an adjustment George.
Yeah, our economy is perfectly sound.
Are these people completely insane? |
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Speaking as an enourmously unlikable person, I find it difficult to maintain grudges against all those that want to kill me, don't you? - Alan Shore
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Post subject:
Posted: Sep 17, 2008 - 11:20 PM
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Member
Joined: Sep 18, 2004
Posts: 5199
Location: standing here shaking my head in disbelief....
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| littlestar wrote: | I don't know WHAT to think anymore...I spent the whole day,
yesterday, getting my funds out of WAMU before they become
FDIC operated. Now other banks are harrassing people to give up copies of Trusts and Wills to open Trust accounts...NO WAY!!!
This patriot act BS is a way to have Govt. fingers in ALL of your affairs |
Okay, I'm out a few days, but could you please e-mail about what is happening? I've heard a bit, but I think I need to hear more! |
_________________
When you try to make others look small, you only show how truly tiny your own spirit is.
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Nostromo |
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Post subject:
Posted: Sep 17, 2008 - 11:23 PM
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Member
Joined: Sep 18, 2005
Posts: 1898
Location: Ottawa, Canada
Status: Offline
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What's insane is that people on Wall Street listen to this man. N
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_________________
"Not bad .... for a human"
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Post subject:
Posted: Sep 17, 2008 - 11:27 PM
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Member
Joined: Apr 14, 2004
Posts: 8413
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| Cat wrote: | | littlestar wrote: | I don't know WHAT to think anymore...I spent the whole day,
yesterday, getting my funds out of WAMU before they become
FDIC operated. Now other banks are harrassing people to give up copies of Trusts and Wills to open Trust accounts...NO WAY!!!
This patriot act BS is a way to have Govt. fingers in ALL of your affairs |
Okay, I'm out a few days, but could you please e-mail about what is happening? I've heard a bit, but I think I need to hear more! |
Don't you watch the news??? That would explain quite a bit!  |
_________________
Yes we can!
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Post subject:
Posted: Sep 17, 2008 - 11:35 PM
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Member
Joined: Oct 24, 2002
Posts: 8171
Location: CA
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| WILL DO !!!! |
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Post subject:
Posted: Sep 17, 2008 - 11:36 PM
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Member
Joined: Sep 18, 2004
Posts: 5199
Location: standing here shaking my head in disbelief....
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| greenchick wrote: | | Cat wrote: | | littlestar wrote: | I don't know WHAT to think anymore...I spent the whole day,
yesterday, getting my funds out of WAMU before they become
FDIC operated. Now other banks are harrassing people to give up copies of Trusts and Wills to open Trust accounts...NO WAY!!!
This patriot act BS is a way to have Govt. fingers in ALL of your affairs |
Okay, I'm out a few days, but could you please e-mail about what is happening? I've heard a bit, but I think I need to hear more! |
Don't you watch the news??? That would explain quite a bit! |
Okay, good one.  Yeah, I've watched the news. But I haven't seen anything that makes me want to pull my money out yet. And I trust Littlestar's intution.
I'm off, so I'll just have to save up some good come backs! |
_________________
When you try to make others look small, you only show how truly tiny your own spirit is.
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