Tuesday, September 16, 2008

BREAKING: Feds to give AIG $85 billion bailout

Americablog has a great post on the Breaking News: The U.S. government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG, the The Federal Reserve said Tuesday.

This of course is the day after Treasurey Secretary Paulson said there would be no more bailouts. That lasted almost a whole 24 hours.

From Americablog:

Jesus Christ.

Chris commented yesterday on the wisdom of bailing out AIG, he's calling it AIG's very own "Bridge to Nowhere":

Why would taxpayers want to extend a $40 billion bridge loan to AIG? This company has been mismanaged and gambled, so good luck figuring out how to make ends meet like everyone else. Maybe AIG should have spent more time worrying about being a sound company instead of making sure their CEO was showered with riches.

More from Chris on the implications of an AIG bailout:

Also in the news late Sunday night was long-troubled insurer AIG, another failure who overextended themselves in the housing bubble. And yes, another company who showered their CEO in riches, who still has that money as the company crumbles based on his bad decisions. (Great work, when you can get it.) AIG is asking the US taxpayers to kindly pass along a bridge loan of $40 billion to help them get through tough times. Is there really a polite way to say "sod off" or do we even need to be polite with these spongers? Call in Nancy Reagan and "just say no" to them all. Let them fail or else they will drag us all underwater with bad debt. Investor Wilbur Ross is saying that we could possibly see 1,000 banks in US fail as they did after the John McCain Keating Five/S&L crisis in the 1980s. The flashy banks and financial services companies all wanted the rugged free enterprise system for those with the least but CEO socialism for those at the top. Let them go under and let them live with the consequences, just as the rest of Americans who have been on the receiving end of the credit crisis.


This past July, Chris wrote of how AIG gave its failed CEO a $47 million severance package for
his troubles:

Poor fellow.

I hope that he will be OK though he does have the advantage of having an office and secretary until the end of the year. This is a new era, where record losses are ignored and multi-million dollar golden hand shakes are given along with a nice peck on the cheek. Let's be honest, corporate America would do this for any employee, especially after years of being treated so well with no luxury too much. Just because he was paid massive amounts based on bad business and now is being paid yet again despite the company writing down billions doesn't mean he didn't deserve it. Hey, he had a contract! Legal wasn't able to find any of those famous loopholes despite AIG losing billions upon billions.

What's that? Your company won't even pay for all of your family health insurance after working there for 10 years? Well, you people are always so greedy and just ask for too much. Shouldn't you be working now anyway?

Was this a good move? Time will tell...

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