AIG rescue may fail, analysts say

AIG rescue may fail, analysts say

businessmirror .com.ph

A number of financial experts now fear that the federal government’s $143-billion attempt to rescue troubled insurance giant American International Group (AIG) may not work, and some argue that company shareholders and taxpayers would have been better served by a bankruptcy filing.

The Treasury Department leapt to keep AIG from going bankrupt on September 16, and in the past seven weeks, AIG has drawn down $90 billion in federal bailout loans. But some key AIG players argue that bankruptcy would have offered more structure and greater protections during a time of intense market volatility.

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There doesn't seem to be an end in sight for this problem. The bailout looks like a way to pay out foreign investors and have the poor tax payers pick up the tab. After all the massive amounts of cash thrown at it, it would be a catostrophe for AIG to fail and have no benefits to such an investment.

Here's to hopeing that this worst case scenario will never play out.

businessmirror .com.ph
(visit the link for the full news article)

Considering that:

A: The apparent majority of high-level economics experts and academicians generally agreed that the bailout was mistake;

B: The general population was against it;

C: Prominent outspoken politicians who have demonstrated a high degree of 'realism' in approaching these matters expressed their opposition to the bailout;

It is clear that those who were entrusted to carry out whatever action was necessary to 'correct' the problem, proceeded in doing exactly the opposite of what was commonly believed to be the right thing, they certainly KNEW this was not the correct - best solution - for the people of this country. They KNEW it was best for the financial banking industry - and mainly - best for the small circle of the bank cartel represented by the Fed. (This can be evidenced by the string of world-class celebration activities the AIG executives immediately enjoyed after the bailout.)

I propose that this was NEVER INTENDED TO BE A SOLUTION. That is how it was sold to the politicians. that is how it was marketed by the media talking heads, and that is how we were expected to accept the bailout.

But only a drunken fool would see all that opposition, by all those highly relevant thinkers and speakers, as well as the community in general, and STILL manage to do the exact wrong thing! It was drunkenness, drunkenness on power and wealth. Of course, we get to pay the tab. And the bar-tender is smiling all the way 'from' the bank.

[edit on 3-11-2008 by Maxmars]

i'm still mad

these businesses made billions right????
they have the smartest brightest minds working for them right???

and yet we,,,me will be paying to bail out there ignorance


now i own a local small business,,,,,i haver to balance my books,,,,take risks,,, or pull back,,,,, expand or not-------and it's all on me!!!!!

that's a huge weight,,,,,,because i can't grow or risk "beyond my britches""

no one will save me,,,, or bail me out-----and now that the economy sucks because of these big businesses.,,,,i'm hurting-----who will help me??? no one----i'll be bankrupt

and because i'm a little guy and have no back up plan ----i take similar risks to be safe and keep moving on---and therefore i'm not scamming people or charging outrageous prices etc ewtc and my profits are smaller

and yet these huge biz are rewarded in a sense for being negligent and basically scamming people

to me something is wrong with this scenario


also----average america said ---"absolutely NO!!! no bailout" we called and wrote our represenatives----and yet they passed it-----which means many voted yes-----
i will bet most of those will be re-elected instead of being booted from office---we are weak in holding our reps responsible