What a Country. Profits are Privatized and Losses are Nationalized.
Posted on 09/23/2008 9:11:18 PM PDT by STARWISE
Federal government (US) is said to be getting 80% of AIG, the largest insurer on the globe.
Happy that I own some AIG stock if this true.
Sad that this is just the beginning of a dirty march.
My question: since the FBI is investigating AIG, how does this affect the acquisition by US?
Woo hoo, I own AIG!
How many shares does this come out to per taxpayer?
2.7 billion shares outstanding X .80 ..... :-\
I don’t know how many taxpayers there are, but if we’re using all Americans as the figure, approx 9 shares per person.
Good. Now they can deduct 80% off my premiums.
Btw, my comment about being happy was very rueful, in case you didn’t catch it. My shares of AIG were worth 60 apiece in April. They were trading in single digits, last I checked.
Yeah, they are diluting shares 5 to 1, so they are getting 80% of the AIG in newly printed pieces of paper.
If you owned AIG shares prior to that, congradulations, you just lost 80% of their worth.
Read my #10. I’m glad I only have 100 shares. I’ve got 5 or 6 individual stocks invested in and the rest are doing well. The rest of my portfolio is in indexes.
What a Country. Profits are Privatized and Losses are Nationalized.
Read my #10. I see my memory is a bit faulty on the value but I was just joking.
Actually, 80% loss is on top of what shares cost now, not 6 month ago or a year ago. Since they got the bail-out, it’s not reflected in trading price, but the way it works is,
If company has total of 100 shares, each share costing $1, total company worth $100.
If company prints another 900 shares, it magically doesn’t cost 9 times more. So, $100 company worth, devided by 100 shares, = $0.10.
Actually, 80% loss is on top of what shares cost now, not 6 month ago or a year ago. Since they got the bail-out, it’s not reflected in trading price, but the way it works is,
If company has total of 100 shares, each share costing $1, total company worth $100.
If company prints another 900 shares, it magically doesn’t cost 9 times more. So, $100 company worth, devided by 1000 shares, = $0.10.
Well at least the .gov is such dumbasses they didn't figure out that if they did it the other way around then they could have gone socialist much faster...and made a profit doing it.
They have figured it out. It is called Taxes.
The Gov, Taxes your profits but pays Wall Street to cover their losses.
So, in other words, the taxes I pay because I am successful go to pay people who fail at their investments.
Makes me want to Puke!
Gee, wonder if anybody (named Eliot Spitzer) is feeling a little bad about what they did to Hank Greenberg now.
(Greenberg was the guy who built AIG and their failure to manage their recent liquidity problem happened because he wasn’t around to foresee this and prevent it. And the new CEO was too incompetent and arrogant to even call in Hank to assist).
AIG refused, arrogantly, to accept short term loans for other private firms because they thought they could avoid the margin calls by regulators in NY.
I don’t think the AIG rescue effort by the Fed was a bad idea. It was collateralized and it is short term and it is very, very low risk. And it prevented a very good, secure company from getting raided by short sellers which would have essentially put half the financial companies in NY out of business because they would have been uninsured and the NY Insurance Commission doesn’t have the kind of funds to cover AIGs entire portfolio even for Wall Street.
well that should kill the stock. convertible preferred instead of warrants to boot.
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