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Fed to give AIG $85 billion loan and take 80% stake[Done Deal]
IHT ^ | 17 Sep 2008 | Michael J. De La Merced and Eric Dash Published:

Posted on 09/16/2008 4:49:39 PM PDT by BGHater

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To: joe.fralick
"but our government has nationalized some of our largest financial institutions, including much of the mortgage market."

B. Hussein should make the deals part of his campaign, "Comrades, the government has only begun. Elect me and you will own all the corporations."

yitbos

61 posted on 09/16/2008 5:36:10 PM PDT by bruinbirdman ("Those who control language control minds." - Ayn Rand)
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To: BGHater
We are flirting dangerously close to effectively renaming our country The Communist States of America...
62 posted on 09/16/2008 5:40:07 PM PDT by Gritty (The Soviet economy proves a socialist command economy can function and thrive-Paul Samuelson,1989)
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To: BGHater

Your line is the same as Mish’s:

http://globaleconomicanalysis.blogspot.com/

“Let’s have the government run insurance companies, auto companies, banks, mortgage companies, home builders, brokerages, gas stations, and for good measure let’s throw in pizza parlors.”


63 posted on 09/16/2008 5:40:49 PM PDT by TruthConquers (Delendae sunt publici scholae)
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To: TruthConquers

Maybe I’m the same guy :)


64 posted on 09/16/2008 5:43:56 PM PDT by BGHater (Democracy is the road to socialism.)
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To: Petronski

They 80+% failed, equity-wise.


65 posted on 09/16/2008 5:44:05 PM PDT by buwaya
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To: Tarpon

And just think, these “genius investment managers” are the fine folks we were going to turn over our Social Security to!!! I guess this is the only thing I can think of in 60 yrs. of living that the Dems were correct about.

All kidding aside, I am sick of people saying “but they are too big to fail”. This is the same old mantra that they said about Bear Stearns, the Fannie & Freddie and now AIG. Who is it going to be next time? Too big to fail is getting old, they gotta get another excuse to help out their buddys.

This whole damn mess is like gangrene that the doctor does not cut off enough of the poisioned leg and has to keep going back week after week to cut a little bit more off. Enough, cut the whole leg off and save the patient.


66 posted on 09/16/2008 5:44:11 PM PDT by biff
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To: sandyeggo

The real issue, and I am personally torn as a capitalist, is that we are setting a precedent that the government will bail out failing businesses. How big do you have to be? How important is the company in the grand scheme of our country?
Part of me thinks this is needed for a company this size, but the other part feels this is bad news for the future. We don’t want our government owning any business, let alone a large insurance company.
It all looks like a move to further the nationalization of banking. Fannie and Freddie were a huge step in that direction.
Taking over the stock was a fast workable solution. It was not the best solution. There needs to be a viable exit plan to get the Fed out of it.


67 posted on 09/16/2008 5:44:58 PM PDT by ritewingwarrior (The real war on terror needs to be fought against Socialism.)
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To: BGHater
Ya gotta believe in Capitalism in the good times and the bad.

This isn't capitalism.
68 posted on 09/16/2008 5:45:10 PM PDT by mysterio
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To: mysterio

I didn’t say it was.


69 posted on 09/16/2008 5:46:31 PM PDT by BGHater (Democracy is the road to socialism.)
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To: Tublecane

They do actually—its called a printing press.


70 posted on 09/16/2008 5:46:34 PM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: CodeToad

AIG exec was harrassed byGovernor Eliot Spitzer


71 posted on 09/16/2008 5:46:52 PM PDT by bert (K.E. N.P. +12 . Conservation? Let the NE Yankees freeze.... in the dark)
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To: Conservative Actuary

AIG is now the government-owned insurance company. I wonder if they will give us free health insurance?


72 posted on 09/16/2008 5:49:22 PM PDT by Brilliant
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To: AndyJackson

9 naughts is pretty fast speed for a lead sled like AIG!! LOL


73 posted on 09/16/2008 5:50:41 PM PDT by biff
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To: Bogeygolfer
If AIG succeeds as I expect them to, then the taxpayers get their 80B back plus interest plus an 80% equity stake in AIG.

You're dreaming. Taxpayers will get jack $hit.

74 posted on 09/16/2008 5:53:58 PM PDT by Nachoman (Think of life as an adventure you don't survive.)
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To: BGHater

Depression averted. For now.

The Fed had not choice but to save AIG to prevent a system wide financial panic and subsequent meltdown. They should not have bailed out Bear Stearns but they had to take on AIG.

By my count, the Fed has about $100 to $150 billion left uncommitted to play with. Another big bailout and they are broke. So what happens then? Do they pretend they still have US treasuries money and just keep tossing money out that they don’t have, or do they say “sorry, we’re broke to”?

Who bails out the Fed? Does GW just tack all future bailouts onto the surging national deficit?


75 posted on 09/16/2008 5:57:45 PM PDT by Freedom_Is_Not_Free
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To: Bogeygolfer
The current shareholders just lost 80% of their stake.

Only if the loan is not repaid and the government installs itself as CEO. The loan gives AIG time to balance its sheets and start selling assets. Also - the credit rating agencies should bump their rating back to AAA - which will have an immediate effect on the collateral they have had to put up to cover their paper losses.

If properly executed - AIG stock could be in the teens in less than a month.

76 posted on 09/16/2008 5:57:58 PM PDT by capydick ("History does not long entrust the care of freedom to the weak or the timid".)
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To: Bogeygolfer
The current shareholders just lost 80% of their stake. Not exactly a happy scenario for them.

TFB. Maybe we can find the executives who drove it into the ground and kill them. Or kidnap their kids, and release unharmed only upon the public suicide of the exec.

Or, maybe John McCain will do with them what he did with Carly Fiorino, and make them campaign spokespeople, with future cabinet jobs a-comin'.

77 posted on 09/16/2008 5:59:18 PM PDT by hunter112 (Gov. Palin is ten times the woman Hillary could've hoped to be, if she had stayed a "Goldwater Girl")
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To: BGHater

So now it’s established procedure that massive financial failure means that Washington will nationalize you, using however much Washington scrip that need to print to make it happen. Mugabe, here we come!


78 posted on 09/16/2008 5:59:21 PM PDT by BlazingArizona
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To: AuntB
Yes, but with a $85,000,000 infusion, the stock will go back up, right?

$4 or $5 per share is a projected price according to another site. We'll see tomorrow how close that is.

79 posted on 09/16/2008 6:01:29 PM PDT by steve86 (Acerbic by nature, not nurture™)
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To: capydick
he credit rating agencies should bump their rating back to AAA

We should all breathe a sigh of relief once that happens. /s

80 posted on 09/16/2008 6:05:03 PM PDT by AndyJackson
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