There's no point in asking when enough is enough any more. The government just doesn't care.
It looks like the feds are poised to throw another $30 Billion into the cesspool that is AIG, and to lower the interest rate on the original bailout money to keep the insurance giant afloat (for what, another quarter or two?).
http://www.reuters.com/article/newsOne/idUSTRE51Q…
I don't even know what to say anymore. Citi, AIG, BofA; before you know it, we'll all be government employees.
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boom: privatize gains
bust: socialize losses
If the $150,000,000,000 the feds already gave AIG represents 80% ownership, then this additional $30,000,000,000 kicks their stake up to 96%.
I guess that 4% gives them plausible denial when they're asked if they've nationalized AIG.
If AIG's now worth $150B:
$120B (80% ownership) + $30B = oh shit
I don't like pouring more money, but I don't even know what the alternative is.
Do you suggest they just let AIG fail Edmundo?
Because in that instance we won't even be government employees, we will all be unemployed.
My apprehension (and I'm afraid each successive day's news is bearing this out) is that all this government aid will be for naught and the economy will cleanse itself anyway, and then we'll all be out of a job with the added burden of 8-9 TRILLION in debt that we wouldn't have had if we'd just let nature take its course in the first place.
Make no mistake - AIG IS GOING TO FAIL.
All we're doing is postponing the inevitable at great expense to ours and future generations.
I agree with Edmundo, giving AIG money is not going to fix the problem, it is just reinflating the bubble and passing it down the line. IMO, this bubble will take way more than 30billion to reinflate, so we're doing this to buy ourselves at most another quarter before AIG fails. Only way I think this moves makes sense is if their management spends the next 90 days winding their operations down so their bankruptcy is slightly more orderly.
Somebody has to be thinking that over there. The guys at the top know there's no way they're gonna make it. Someone has to be planning a way to limit the fallout from their eventual bankruptcy.
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