Fed blinks, bails out AIG with $85Billion loan.

[bdude]

Nationalized Insurance Agency?

What's next...Nationalized Health Insurance???

 

[LegendKiller]

Originally posted by: mshan
If you had to mark to market, right now, perhaps...

Hopefully LK will chime in regarding his "soft landing" comments in another thread.

You think this is over?

 

[LegendKiller]

Originally posted by: gevorg
This 85 Billion is nothing, won't change anything, might just as well save a major "established" insurance company for better or worse.

If you want to worry about a bailouts, checkout Freddie Mac and Fannie Mae. Their debts are in TRILLIONS! Guaranteed to devalue the dollar.

Their debt isn't in the "TRILLIONS". Their debt is largely already financed. Stop reading news stories and actually do some research.

 

[BrunoPuntzJones]

Originally posted by: senseamp
You cannot have working capitalism under these rules: Profits are MINE, but losses are OURS.

Humm, I like it

Someone check Marx's coffin and see if it's open from that boner he's sporting.

Wonder how much of a severance package those at the top will get. Or if there will be any executive "suicides".

 

[LegendKiller]

Originally posted by: Dari
If these companies are too big to fail, why weren't they regulated as such?

Because the Republicans didn't want it.

 

[mshan]

Even at the beginning of September, CNBC talking heads were saying that deleveraging would probably continue to take place throughout September.

XLF: http://finance.yahoo.com/echar...le=on;source=undefined (Financials bottomed July 15, and at least till now, are maintaining a slow uptrend)

 

[LegendKiller]

Originally posted by: senseamp
Short the dollar long term, is all one can do about this. This Fed has demonstrated that money is worthless to it, it will give it out hand over fist. If it's worthless to the Fed, it's certainly worth less to me.

Wrong answer. The dollar was only falling the way it was because nobody thought the rest of the world was in trouble.

Oopps...

 

[Dari]

Originally posted by: senseamp
You cannot have working capitalism under these rules: Profits are MINE, but losses are OURS.

Tragedy of the commons.

 

[Blackjack200]

Originally posted by: Farang

Originally posted by: Blackjack200

Originally posted by: Dari
If these companies are too big to fail, why weren't they regulated as such?

That's the real question. There's no doubt that the regulation will change to prevent a re-run. But people have a right to be outraged that this wasn't the case from the start.

I think the concept of deregulation of business has always been such an appealing one because the old argument goes, get government out of the way and business is more efficient. I think this gives those who support more regulation a lot more political capital in the years to come.

This is the point that Obama needs to hammer home (and I think he is). This Leze-fair pure capitalism stuff is no more viable than pure socialism.

Regulations and FDIC insurance have prevented a run on bank deposits, now we need safeguards that permit even the largest corporations to fail without causing market panic.

 

[GTaudiophile]

So, who is going to bail out the government?

 

[theeedude]

Originally posted by: LegendKiller

Originally posted by: senseamp
Short the dollar long term, is all one can do about this. This Fed has demonstrated that money is worthless to it, it will give it out hand over fist. If it's worthless to the Fed, it's certainly worth less to me.

Wrong answer. The dollar was only falling the way it was because nobody thought the rest of the world was in trouble.

Oopps...

That is why I said long term. If there are countries in the rest of the world who are socializing their losses by printing money and handing it out, I would be short their currency too.

 

[bctbct]

Originally posted by: GTaudiophile
So, who is going to bail out the government?

you and me

 

[miketheidiot]

Originally posted by: senseamp
That's like saying someone is healthy aside from the whole full blown AIDS thing, just gotta separate those.
This company is worthless.

clueless as always

 

[Blackjack200]

Here's a thought I just had: we just gave AIG $85 billion for an 80% stake. But AIG is a global insurance company, and it's failure would have dire consequences in the global markets. Why not try to involve other govenments as well? Loan AIG $1 billion, and receive warrants that would give you 1% control of the company if you exercise them. I mean, this is just a huge load for the U.S. taxpayer.

 

[BrunoPuntzJones]

Originally posted by: bctbct

Originally posted by: GTaudiophile
So, who is going to bail out the government?

you and me

Or through issuance of more foreign debt, the rest of the world, and they shall own us.

 

[Farang]

Originally posted by: Blackjack200
Here's a thought I just had: we just gave AIG $85 billion for an 80% stake. But AIG is a global insurance company, and it's failure would have dire consequences in the global markets. Why not try to involve other govenments as well? Loan AIG $1 billion, and receive warrants that would give you 1% control of the company if you exercise them. I mean, this is just a huge load for the U.S. taxpayer.

I'm not much of an economist but that seems like giving your local McDonalds $5,000 to help them stay in business. The other countries are just customers.

 

[miketheidiot]

Originally posted by: gevorg
This 85 Billion is nothing, won't change anything, might just as well save a major "established" insurance company for better or worse.

If you want to worry about a bailouts, checkout Freddie Mac and Fannie Mae. Their debts are in TRILLIONS! Guaranteed to devalue the dollar.

their assets are also in the trillions

 

[LegendKiller]

Originally posted by: senseamp

Originally posted by: LegendKiller

Originally posted by: senseamp
Short the dollar long term, is all one can do about this. This Fed has demonstrated that money is worthless to it, it will give it out hand over fist. If it's worthless to the Fed, it's certainly worth less to me.

Wrong answer. The dollar was only falling the way it was because nobody thought the rest of the world was in trouble.

Oopps...

That is why I said long term. If there are countries in the rest of the world who are socializing their losses by printing money and handing it out, I would be short their currency too.

LOL. You make no sense at all.

 

[Infohawk]

AIG's investors better lose everything.

 

[Thump553]

The original poster asked who's next? The answer, most likely, is Washington Mutual.

 

[Engineer]

Originally posted by: Slew Foot
I bought some losing lottery tickets, I want the government to bail me out.

I lost some money in the stock market last year and really, really need a bailout!!!

 

[Viditor]

Originally posted by: Blackjack200
Here's a thought I just had: we just gave AIG $85 billion for an 80% stake. But AIG is a global insurance company, and it's failure would have dire consequences in the global markets. Why not try to involve other govenments as well? Loan AIG $1 billion, and receive warrants that would give you 1% control of the company if you exercise them. I mean, this is just a huge load for the U.S. taxpayer.

Actually, the really scary point is that absolutely nobody has a clue what the failure of AIG would do...

 

[halik]

Originally posted by: senseamp
$85Billion loan to a near worthless company that insured toxic mortgage securities against default.

So you have no idea what you're talking about then, huh? They have ~1 TRILLION of assets... fed just got em for cents on the dollar

 

[mshan]

Nouriel Rabini, on the CNBC Asia webstream, said FDIC had $50 billion in reserves, used $8 billion on IndyMac, and will have to use half of it's reserves to bail out WaMu.

 

[Dari]

With the government nationalizing all these companies, where is it going to find the brains to run them? Who are they going to hire? I hope it isn't government officials or people from academia. That would be scary and ruin the companies.