NOT AGAIN! Feds Bailout AIG for $85 BILLION
 

Breaking news: The Federal Reserve says it is taking over crumbling insurance giant AIG in an $85 billion rescue plan.

Cnn.com

NOT AGAIN!! :Oh crap :mad:

So what's the reality of these bank takeovers are like 34% of american's losing all but 100k of their savings?

shareholders are losing big

technically it's a loan. To me a bailout is giving someone money and not expecting it back. if I loan someone money I expect to be paid back.

This is a bridge loan to get AIG enough time to sell some assets and get some cash in the bank. AIG has a trillion dollars in assets and while they fucked up through bad mgmt to end up with not enough cash on hand this loan will get paid back and AIG will move forward.

They called me for a loan but I could only get half the money together.

3-month Libor plus 8.5%, which totals 11.31% at today's rates... Not bad. Looks like the Fed will make a good profit on 85 billion.

And yet another problem. So many ARMs based on Libor.

"The London interbank offered rate, or Libor, that financial institutions charge each other for loans soared 3.33 percentage points to 6.44 percent today, according to the British Bankers' Association. The increase was the biggest in its history. The rate was as low as 2.07 percent in June. "

I'll scratch your back, but you scratch mine with interest. ;)

Every bit of currency that comes OUT of the Federal Reserve is a loan WITH interest waiting to be paid back. They are one of the big reasons we are so far in debt to begin with and them bailing these people out is just another powerplay to stabilize their already ironclad grip on our country.

Stocks will probably be up tomorrow at the opening, but who knows what will happen during the day :Oh crap

A loan to a failing company that no other financial institute would go near. We'll see if we ever get it back.

Nonetheless, our tax dollars should not be used like this. It gives AIG a huge advantage over their competitors. It sends the signal to other businesses that if their risks don't work out, the government will fix it. This concept of free market for profits but socialize losses is not something that can continue.

Welcome to the Machine... All your monies belong to us.

Failure of AIG is not an option at this point, the system would buckle like it would have Bear Stearns went down, sad to say but they had too

Exactly. The Fed is sitting back rubbing it's hands thinking about how it's got another bunch in their back pockets. "Oh...late on the rent are we lad? Well...that's not a problem...but see...we need this little political favor done..."

Oh geez!!!!