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Post subject: US government in $85bn AIG rescue
 Posted: Sep 17, 2008 - 02:38 PM
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This account has been Permanently Banned
Joined: Mar 25, 2003
Posts: 7713
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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Joined: Sep 18, 2004
Posts: 7329
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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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Post subject:
Posted: Sep 17, 2008 - 02:56 PM
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This account has been Permanently Banned
Joined: Mar 25, 2003
Posts: 7713
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: 14326
Location: Your daily life is your temple and your religion. Kahil Gibran
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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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Post subject:
Posted: Sep 17, 2008 - 06:17 PM
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Member
Joined: Oct 24, 2002
Posts: 15102
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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Post subject:
Posted: Sep 17, 2008 - 08:13 PM
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Member
Joined: Sep 18, 2005
Posts: 4619
Location: Ottawa, Canada
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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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Post subject:
Posted: Sep 17, 2008 - 10:30 PM
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Member
Joined: Oct 13, 2005
Posts: 1746
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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Member
Joined: Apr 14, 2004
Posts: 11590
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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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"It's never too late to be who we might have been" George Elliot
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Post subject:
Posted: Sep 17, 2008 - 11:03 PM
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Member
Joined: Oct 24, 2002
Posts: 15102
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: 8074
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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Not an eye for an eye is the golden rule
Just leaves a room full of blind men...DMB
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Post subject:
Posted: Sep 17, 2008 - 11:20 PM
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Member
Joined: Sep 18, 2004
Posts: 7329
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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! |
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Post subject:
Posted: Sep 17, 2008 - 11:23 PM
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Member
Joined: Sep 18, 2005
Posts: 4619
Location: Ottawa, Canada
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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: 11590
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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!  |
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"It's never too late to be who we might have been" George Elliot
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Post subject:
Posted: Sep 17, 2008 - 11:35 PM
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Member
Joined: Oct 24, 2002
Posts: 15102
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: 7329
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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! |
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Post subject:
Posted: Sep 17, 2008 - 11:39 PM
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Member
Joined: Apr 14, 2004
Posts: 11590
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| Have a good time! |
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"It's never too late to be who we might have been" George Elliot
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Post subject:
Posted: Sep 18, 2008 - 12:07 AM
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Member
Joined: Oct 24, 2002
Posts: 8074
Location: New Jersey USA
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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! |
Not to worry, sometimes life gets in the way of keeping on top of things. Here's what's up with WaMu:
http://www.newser.com/story/37677/feds-search-for-wamu-buyer.html
With everything that's going on with Merrill Lynch, Lehman, AIG and now WaMu, I don't blame people for making a run on the banks. (Reminds me of "It's A Wonderful Life" somehow)
I'm surprised that people aren't actively jumping off the rooftops over on Wall Street.
I'm have a sizable amount upstairs in a fireproof strongbox, just in case.
Scarey times these are........................ |
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Not an eye for an eye is the golden rule
Just leaves a room full of blind men...DMB
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Post subject:
Posted: Sep 18, 2008 - 12:21 AM
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Member
Joined: Oct 24, 2002
Posts: 15102
Location: CA
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Me too Steve...ALL of you should stash some CASH somewhere...it's almost like the 1930's AGAIN....I got "warnings" of this last year, but anyone I talked to thought I was just paranoid...ok...so I was EARLY..sue me....
If you have your retirement or bulk of savings in Mutual Funds...you
better start thinking about those as well....My prediction for at least the next 6 months is that CD's are your only safe bet from losses.
A friend has lost 30k on her Fund of only 4 times that amount...
that's a LARGE loss to take with prices skyrocketing....
Not trying to panic anyone...but better SAFE than Sorry...
My work here is done....sorry it wasn't a pleasant job....  |
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Post subject:
Posted: Sep 18, 2008 - 12:30 AM
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Joined: Sep 18, 2004
Posts: 7329
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Well, gonna be making a little stop at the bank on my way out of town......
We have less than $100 at home, and ALL our money is tied up with WAMU.
Geez, this is awful, isn't it. And yeah, I thought of "It's a wonderful life" as well........
I guess I could jump off my roof, but it's a one story, and I'd probably just sprain an ankle......... |
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Post subject:
Posted: Sep 18, 2008 - 12:38 AM
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Member
Joined: Oct 24, 2002
Posts: 8074
Location: New Jersey USA
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| littlestar wrote: | | Me too Steve...ALL of you should stash some CASH somewhere...it's almost like the 1930's AGAIN....I got "warnings" of this last year, but anyone I talked to thought I was just paranoid...ok...so I was EARLY..sue me.... |
I was right there with you, and friends and family thought I was crazy. Now they're in a panic, but I've got my ducks in a row.....
Years ago I did an internship on Wall St. before declaring my major, and it taught me a valuable lesson, how to read the signs. That's why I worked at the towers. And even though I didn't pursue a career in finance, I learnt how to protect me and mine.
I don't believe in credit cards or financing, if you can't buy it cash, (except a mortgage of course), you don't buy it. And always have enough onhand to get you through for at least 6 months. I may be a cheap a$$, but I don't lay awake at night either...... |
_________________
Not an eye for an eye is the golden rule
Just leaves a room full of blind men...DMB
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Post subject:
Posted: Sep 18, 2008 - 01:08 AM
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This account has been Permanently Banned
Joined: Mar 25, 2003
Posts: 7713
Location: 221B Baker Street London
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Looks like the U.K Northern Rock Fiasco, is happening all over again.
Lloyds TSB is to merge with HBOS, creating a banking giant which will hold close to a third of the UK's savings and mortgage market.
Both firms' boards have agreed to a deal, at a price of 232p per HBOS share, following talks. The deal should calm uncertainty about the strength of Halifax-Bank of Scotland after a run on its shares.
The deal is set to be formally announced on Thursday morning, says BBC business editor Robert Peston. he talks between the two banks were first reported by the BBC earlier on Wednesday.
With 20% of the UK mortgage market, HBOS is currently the country's largest mortgage lender. Lloyds ranks fourth with an 8% share. The development comes as the credit crunch has wreaked havoc on some of the world's biggest financial institutions in recent days: Our business editor said the government had opted to push through the Lloyds TSB-HBOS tie-up after HBOS voiced concerns that depositors and lenders had begun to withdraw their credit from the bank.
http://news.bbc.co.uk/1/hi/business/7622180.stm |
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Post subject:
Posted: Sep 18, 2008 - 01:20 AM
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Member
Joined: Oct 24, 2002
Posts: 15102
Location: CA
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I get ya Steve...only differences in our plan is that I do carry and use Charge Cards, but I pay the balance, except the Vet BILL, off each month...the reason WHY I don't pay the VET is because I am still MAD at what they did and the DEAL of no finance charge for a year (what I took) was too good to pass on. Not bad with a Rating of 828 as of this morning...HUH ?  |
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Post subject:
Posted: Sep 18, 2008 - 02:17 AM
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Member
Joined: Oct 24, 2002
Posts: 8074
Location: New Jersey USA
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| littlestar wrote: | | I get ya Steve...only differences in our plan is that I do carry and use Charge Cards, but I pay the balance, except the Vet BILL, off each month...the reason WHY I don't pay the VET is because I am still MAD at what they did and the DEAL of no finance charge for a year (what I took) was too good to pass on. Not bad with a Rating of 828 as of this morning...HUH ? |
Just as a side note, I do have credit cards, and they're always offering me more and more credit, but I do as you do. I'll charge something large, and pay it off each month. Sometimes I'll pay half one month and half the next, but I never let them run on. It's good to know that there are options, in case of emergency.  |
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Not an eye for an eye is the golden rule
Just leaves a room full of blind men...DMB
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Post subject:
Posted: Sep 18, 2008 - 02:24 AM
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Member
Joined: Oct 24, 2002
Posts: 8074
Location: New Jersey USA
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| Please tell me you guys watched John Stewart last night... the Sarah Palin comments were priceless............ |
_________________
Not an eye for an eye is the golden rule
Just leaves a room full of blind men...DMB
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Post subject:
Posted: Sep 18, 2008 - 03:10 AM
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Member
Joined: Oct 24, 2002
Posts: 15102
Location: CA
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This one?
HERE
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