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- brad3378, on 09/17/2008, -19/+834I wonder how close the vote was?
.......Oh, That's right.... There was no vote. - DangerCollie, on 09/17/2008, -53/+525Socialism for the rich. Between this, the other investment bank bailout, the loans the big 3 car makers want and the bill for the Iraq war...your grandchildren are still going to paying these debts off.
Way to go Republicans! You not only bankrupted our country, you passed it down to future generations. - seocookie, on 09/17/2008, -49/+429This article is VERY inaccurate. This does NOT add to the debt--read what you wrote. If the Federal Reserve added $10000000 trillion or $1 to the money supply, it would not increase our debt a penny. The Federal Reserve does NOT take taxpayer money as it does not need it. Why take people's money when you can just make up your own?? The Federal Reserve will not take a penny of taxpayer money with this deal as it doesn't need to; it just creates the money. It has no reserves. It's not a reserve bank. This will hurt the taxpayer even more by simply increasing the money supply which results in price inflation. So the taxpayers get to keep their money, but the price for bread, gasoline, and porn will go up since the Dollar is devalued.
Buried for being very misleading. - richmomz, on 09/17/2008, -12/+257Our biggest mistake was allowing the formation of these "super banks" in the first place. If a financial institution grows so large that "it is too big to fail" it should be broken up into smaller pieces, just like any other monopoly, so that they CAN fail without wrecking the economy. Otherwise they can be as reckless as they want, knowing full well that the taxpayers will bail them out if they screw up.
So much for the "virtues" of de-regulation: what a f-ing mess! - Hellman109, on 09/17/2008, -25/+269Ahh what a good investment, put money into a failed company!
The US economy is sure to prosper from this smart move! - inactive, on 09/17/2008, -7/+179 Our grandkids wont be paying the bill, no one will. We're going to default, it's unpayable.
Ohh, and if you think the democrats aren't just as owned by the financial establishment as the republicans you have a lot to learn. The democrats are not the good guys, just the other guys. - tbredofsin, on 09/17/2008, -16/+139a) The Federal Reserve (our semi-private "bank for our banks") bought out AIG with their own funds. NOT the Federal Government. Thus, no debt.
b) They bought AIG with the intent to liquidate it gradually, to avoid damaging fire sales that would hurt our economy more. They plan to make back every penny they spent; even if they don't, it certainly won't amount to $85 billion in losses.
so,
c) I have buried your submission for inaccuracy in headline and description. - guyincognitoo, on 09/17/2008, -4/+119You pay for porn?
- rrc7cz, on 09/17/2008, -13/+128Stop with the partisan ***** - Obama and the Democrats supported these bailouts as much as the Republicans did. Face it - you're a fool for believing there are two different parties and you actually have a choice.
- teamr, on 09/17/2008, -11/+69Why are digg comments about this stuff always so far off base? Yes the Feds are lending AIG 85 billion and taking an 80% stake in the company, but it's only a two year loan to keep AIG afloat long enough for them to liquidate and pay it all back. With interest. And since they are replacing all upper management, it is guaranteed to work.
AIG, the world's largest insurer, was hours away from bankruptcy. Crashing so suddenly would have been DEVASTATING for the world economy (not just America). The Feds are doing the right thing here, and making a profit to boot. - rv361162, on 09/17/2008, -11/+69Hey Futile, do you even have a clue on what a "bubble" is?
You're idiotic sarcastic remark shows that you're one who would support sustaining the bubble and when the sustained bubble bursts, guess what? An even BIGGER problem is created.
We MUST allow the market to flush itself out and let those who have botched their own companies to go down in flames. Guess what? You don't get out of a recession by sustaining and prolonging it. Christ, what an asinine comment, Futile.
http://www.youtube.com/watch?v=9qOCcAu_vlc - seocookie, on 09/17/2008, -6/+59Wowzah. Where to begin...
The Federal Reserve has zero dollars of its own, yet can loan out $85 billion (theoretically, an infinite amount of money) and demand it to be repaid WITH interest. Could you do this in the private sector?? Could you give money that you don't have to someone and then demand them to pay it back with interest? It's impossible unless you're a counterfeiter. Wait a minute...what the Federal Reserve does has striking similarity to counterfeiting, because that's what it is. Counterfeiting is illegal not because people could make money, it's because it literally robs society of its resources. If you add $10 to an economy that only has $10, then you've reduced everyone in that society's purchasing power by 50%. It's exactly what the Federal Reserve does, only it's legal for them to do it.
What the Federal Government does in concern with the National Debt, spending, and taxation is in the realm of Fiscal Policy. What the Federal Reserve does in concern with the money supply is associated with Monetary Policy. Two completely separate concepts, so again, the taxpayers aren't paying a dime for this bailout. It's not increasing the national debt because the Government is not borrowing the money from another entity; in fact, the Government is not even receiving the money in this deal--it's an agreement between the Federal Reserve and AIG so the Government carries zero burden. - shallot, on 09/17/2008, -16/+67So, isn't America a capitalistic democracy ? Not anymore. With 79.6 stake, the federal govt owns this company. Does anybody see a pattern here? Fed is buying up companies one by one and conveniently compaines are failing one by one.
Is America turning into a Socialistic country ? Now, govt owns all the mortages and all the insurance on those mortages ( remember fannie and freddie, now AIG)...next will be the telecoms...and there you go..complete circle makes up the big brother !!! - henryhomer, on 09/17/2008, -10/+59The USA is now a socialist paradise. Half of mortgaged properties are now state owned so at a stroke tens of millions of americans now live in public housing. The state guarantees Bear Sterns liabilities and now own the biggest insurance company. The agricultural sector has been dependant on state subsidy for generations.
If you consider the number of companies that are reliant on federal spending eg defence spending then I wonder what proportion of the US workforce is now effectively working for the state?
How long before George Bush announces the first 5 year plan and farm collectivisation? - inactive, on 09/17/2008, -12/+57Good points in this investment:
1)IF you are an investor, you might want to grab AIG for cheap. 2$ is a joke.
2)If you are an investor, CONGRATS! All your investments won't crash -- tomorrow.
Bad points:
1)Lol??? Where could I start??? - seocookie, on 09/17/2008, -3/+47I take the free tour.
- scschwa, on 09/17/2008, -3/+46"Buried for being an idiot". Printing money is akin to stealing from everyone, not just taxpayers. See Zimbabwae for a good example.
-QFT - Shaman760, on 09/17/2008, -7/+46Bet those CEOs get sweet compensation packages. Probably 8 figures!
- principle, on 09/17/2008, -0/+39The Federal Reserve is NOT a part of the US government. It seems that everyone is afraid to say out loud that it is a private corporation. And it is about time they start doing their job of being the lender of last resort.
- HorusHeresy, on 09/17/2008, -20/+58#1 - Deregulation.
#2 - Reduction in education quality.
#3 - Deification of greed and the free market.
These are conservative, neocon, neolib ideals (neolib does not mean liberal - it is belief in the free market taken to the stratosphere). These ideas are what got us in trouble and they are clearly pro-business, conservative ideas. - moses141, on 09/17/2008, -6/+42From the Seattle PI:
'Rep. Barney Frank, D-Mass., and chairman of the House Financial Services Committee, said Paulson and Bernanke had not requested any new legislative authority for the bailout at Tuesday night's meeting. "The secretary and the chairman of the Fed, two Bush appointees, came down here and said, 'We're from the government, we're here to help them,' " Frank said. "I mean this is one more affirmation that the lack of regulation has caused serious problems. That the private market screwed itself up and they need the government to come help them unscrew it." '
Remember that Paulson (and most other monetary policymakers in the federal government) were former employees of these investment banks and have a huge financial stake in their success.
Everyone who is angered by this please contact him and support his investigation into this matter. - spikespikespike, on 09/17/2008, -9/+44The level of paranoia coupled with the deep misunderstanding of how the US Economy works make these comments cringe worthy.
- Azurensis, on 09/17/2008, -6/+38...a government of the corporations, for the corporations, and by the corporations.
- executorzz, on 09/17/2008, -7/+38The money was lent not given to AIG. I don't like careless government spending but overall I'm pretty satisfied with this transaction.
We lent them $85 billion.
1. we own 80% of the company
2. The debt is over collateralized meaning they put up over $85 billion in assets to secure the loan.
3. They pay 11% interest annually over the entire life of the loan.
4. AIG has $1 trillion on its balance sheet.
Unlike bear sterns the tax payer will make a good return on this transaction. - Cattywampus, on 09/17/2008, -3/+31Why does every deal such as this get called a "bailout"? This is a *loan.* The U.S. lends money to AIG, and AIG has to pay about 11% interest on it. Plus the govt. owns an 80% stake in AIG.
The headline on this submission is misleading. The headline on the actual article is more accurate:
"U.S. Fed to lend $85 bln to AIG, take 80 pct stake" [note the word *lend*] - rompom7, on 09/17/2008, -3/+30TheMene: Throwing money at the problem doesn't solve it.
Think about this though... The worlds most expensive and advanced scientific experiment: the LHC, at high estimates cost around $3 billion USD.
Can you imagine the _real_ problems that could be solved if that 85 billion had be used wisely? - teamr, on 09/17/2008, -2/+28What don't you understand? They arent trying to run AIG as normal. They are SELLING it. They are pumping 85 billion into AIG so it can stay alive long enough for them to break it apart, sell it, and repay the loan.
The government basically owns the company now, so they can oversee the entire process. They are giving it a two year time frame. The problem isn't AIG going bankrupt. The problem is AIG going from "business as usual" to "oh ***** we're *****!" in a matter of weeks.
It's like throwing a fat man into a pool without giving everyone else a chance to clear out. The feds are delaying the fat man dive, but he's still going in the pool. - mediaspree, on 09/17/2008, -2/+28"And since they are replacing all upper management, it is guaranteed to work." I fail to see how this is guaranteed to work simply by bringing in new blood. From where? Some other giant failed company?
- reuscel, on 09/17/2008, -7/+33Deregulation, with a little help from Phil Gramm.
http://www.motherjones.com/news/feature/2008/07/fo ...
How can anyone possibly stand up for the GOP after the past 8 years? You're an asshat. - sigmaman2, on 09/17/2008, -5/+30Coming Soon...
ZIMBABWE 2!!
"Welcome to America" - orlyfactor, on 09/17/2008, -10/+35AIG should start offering health insurance (if they don't already) and give it to every American. We just paid for our socialized healthcare.
My new business plan:
1. Start a business
2. Completely run it into the ground very quickly
3. ???? (Some gov't secrets here)
4. Profit! - seocookie, on 09/17/2008, -14/+38Uhm..yes they can just "magically create it". Go read the Federal Reserve Act. How does inflation occur?? It's not an increase in prices, inflation is an increase in the money supply which leads to an increase in prices. Look at M3 which is the aggregate money supply, here's a link: http://upload.wikimedia.org/wikipedia/en/thumb/9/9 ...
Look how much the money supply has increased. How does it increase?? Through the Federal Reserve.
Owned. - inactive, on 09/17/2008, -0/+24Bad investments will always fail.
- mstachiw, on 09/17/2008, -2/+26aside from the complexities of exchange rate, corporate outlook, stagnation and growth there is one simple equation that stands true...
the more money you print the less that money is worth... its not rocket science - Ju1c3, on 09/17/2008, -7/+31Welcome to America...
Where we privatize profits, and socialize risk. - vbullinger, on 09/17/2008, -0/+24Look, Tyrfang, AIG made mistakes. Yes, people tied their insurance into them. And? If I make financial mistakes, does the government bail me out? NO! How about my employer? If they make mistakes, does the government bail _them_ out? NO!
And it's not the government, people, it's US! WE have to pay for this!!! - hydroplane, on 09/17/2008, -7/+31Yeah instead of taking money directly from you they just devalue the entire currency. Brilliant.
- rrc7cz, on 09/17/2008, -0/+24You obviously have no idea what capitalism actually is. True capitalism would call for AIG to simply go bankrupt and fail. You're right in one way though - nobody except the already rich got returns on this deal...
- MacEnvy, on 09/17/2008, -2/+25The government didn't buy AIG, The Fed did ... and The Fed is a privately-owned group. Unfortunately.
- MaynardJK, on 09/17/2008, -7/+30"#2 - Reduction in education quality."
That's funny. Other than NCLB, the Democrats have been running our education system into the ground for decades.
I am no GOP supporter, but the Dems aren't exactly angels either. - Wetzilla, on 09/17/2008, -2/+25Good point 3) If you live in the USA, congrats! You've saved the economy from completely crashing sending us into a second great depression! For now at least.
- decet, on 09/17/2008, -4/+26It should be noted that AIG is the company that sells liability insurance worldwide to CEOs to cover their blunders. It seems they have been required to pay up a lot in the recent months, going broke in the process...
- woodrow8292, on 09/17/2008, -2/+24Look at how much money Fanny and Freddie gave to Obama then tell us how its all just the Rep. fault. It reaches across the aisle on this one. Both side are to blame by letting all this go and turning a blind eye on the economy.
- sirellyn, on 09/17/2008, -1/+22Bailout after bailout and I still hear "If we let them fall the economy will crash". You can't put together that things have crashed, and you are spending any resources you would have for rebuilding from the crash on prolonging things. So when things do collapse, you won't be just screwed, you'll be third world.
There's an even greater cost to keeping this stuff from happening now. - Christ0s, on 09/17/2008, -2/+23If i might add this is from the party that said the nine scariest words in the English language are "we're from the government and we're here to help." unless you're an multi-billion dollar company looking for a handout.
- PeanutCheeseBar, on 09/17/2008, -3/+23Even though we are considered a "capitalistic" society, this is proof enough that we are "closet Socialists", and is further reason why the government should not get involved, because the people will have to pay.
When corporations are doing well, the CEOs profit; when corporations are doing poorly, the people pay. Privatize profits, socialize losses.
- Ramble, on 09/17/2008, -2/+21The UK economy is also heavily tied to the rest of the EU. If you fail we still have something.
- jspegele, on 09/17/2008, -0/+19What are you guys talking about? All we have to do is print more money. Print, baby, print!
- eviltandem, on 09/17/2008, -2/+21Yes.
The open market is bad. Wouldn't want AIG to have to deal with the open market.
This is fabulous. At this rate the American Government will own everything in this country worth having. Socialism ftw! - Farmer77, on 09/17/2008, -2/+21Damned If You Do, Damned If You Don't.
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