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Originally posted by HunkaHunka
Originally posted by LostNemesis
So I wonder if this is going to upset the American tax payers even more.... It wasn't long ago that a huge sum was given to AIG, and now they are returning to ask for more.
I know this sounds naive, however, as long as I have my life insurance with AIG, I want the gov to keep them afloat.
Sorry... I've just paid enough on it, that I need it to stay legit.
This is one tax payer not upset by that portion of the bailout.
Originally posted by Spectre0o0
ok the next post.
Where does the bailout money really go?
ever wonder why the insurance companies are being bailed out?
when aig was bailed,they were worth 12.5 billion. so why does an insurance company need to be 100 times the size it was? 1.4T SO FAR,AND MORE TO COME
i'll do this in as short a story as i can...fasten your seatbelt.
in 2005,2006,2007,subprime loans were made to people that could not afford them. this was due to deregulation.
2005 defaults just hit,2006 comes this year,and 2007 was called a mortgage orgy of unbelievvable proportions,BY THE PEOPLE FROM FANNIE,AND FREDDIE. these are due to hit in 2010.
the people that made these loans knew, who was probably going to fail ,and who was not.
so what they did ,was took out insurance on the most likely to fail.
say that 20 of your friends get this info too,they also can take out insurance on the same house and others.
these are called morgage defalt swaps. its the same as gambling.
if 20 of your friends insure a house that defaults,say the house was mortgaged for 100,000,each one gets 100,000 dollars. quite a deal for gambling about 400.00 dollars on a normal midrange house.
now the insurance companies owe $2,000,000 to the 20 people on one bad loan.
now... remember all the toxic paper that was sold to investors around the world? well the foriegn investors got pissed ,and the dollar started to collapse.
this paper was bought back at pennies on the dollar,and insured here,to raise the price of the dollar. restore faith in the currency in foreign markets.
well the insurance companies couldn't possibly pay off all the winners in the mortgage lottery.HENCE THE BAILOUTS TO THE INS CO'S
now we've had the first round of bailouts,and the money goes right into the pockets of the insiders that knew who to bet on, by way of the insurance companies.
THE MONEY HAS NOW BEEN LAUNDERED.THIS IS WHY THE INS CO'S NEED ALL THIS MONEY.ITS A CIRCLE JERK.
THIS IS THE SHORT FORM,BUT IF YOU LOOK IT UP AND DO YOUR HOMEWORK, you will find out that we have been screwed so bad,we should have all got a kiss.
think about it. why are we bailing out INSURANCE companies,with no responsibility to account for where its going?
and then we LOANED the money to the auto industry,an industry that returns something to the economy.
what do insurance companies return to the economy.NOTHING!!
AND THE JOKE IS ON US. WE NOW OWE IT TO THE FEDERAL RESERVE!!!
and the best part is,that the worse they make the economy,the more defaults occur!!! lucky them. what a surprise!
this is why gold has stalled in a bad economy. it's usually the safe haven,but the boys on wall street,and your federal government have found an investment that dwarfs the metal.
here comes the next bailout at almost another billion. there will be more this year to match the cashout,and as for next year????? OH BABY!!!!!!!!
now i have read that the total will be over 5.7 trillion dollars
NOW WITH HR 45 THEY WANT TO TAKE YOUR GUNS,to protect themselves when everone figures it out.
there's a signature on this site, and it really rings true...the final step of a dying government,is to loot the treasury on the way out the back door.
(visit the link for the full news article)
what will we do if this is provable
HR 45 WILL PROTECT THE GOVERNMENT...FULL CIRCLE TAKE OVER
[edit on 2-3-2009 by Spectre0o0]
[edit on 2-3-2009 by Spectre0o0]
Originally posted by marg6043
reply to post by RetinoidReceptor
Still how many billions if not trillions is AIG worth to the tax payer in the nation.
It is hard to conceive that AIG tax payer bail outs will be greater than the Obama stimulus to the economy and the nation's budget put together.
Then we don't even know how much are they really are in the hole.
Beside as the economy keeps going down, and people default on almost everything are we to still keeping this companies working?
But working for who.
Originally posted by RetinoidReceptor
Unfortunately AIG really cannot fail unless you want at least a trillion dollars worth of derivatives to collapse and more strain to be put on the financial system which could lead to other derivatives collapsing. Sad but true.
Originally posted by DangerDeath
reply to post by HunkaHunka
You should try to get this:
You are paying insurance to AIG.
AIG is broke.
Now you are paying for AIG to stand up again.
You are being robbed and the idea of insurance is bleeding you to death.
You still believe it is your lifesaver.
Absurd and self destructive. Total exploitation.
Originally posted by jd140
Well... first off, yes... It's not my duty to by altruistic to others... It is however my duty to pull for the politics of ME.
Remember, all politics are local... and you don't get much more local than this.
Are YOU going to say it's ok that your family doesn't eat just as long as your not being selfish?
PUHLEASE Put your self righteous rhetoric on a shelf... because I don't participate in politics for you... I participate in politics for myself and my family. PERIOD.
Now, when I was in the service, that was for you... but that's all yer getting, other than my tax dollars.
I guess you don't realize that if policticans fail for the majority then they fail for you too. Regardless if what they did was for your good. What this equates to is us paying for you to have life insurance.
Are you okay with us paying for your life insurance if we cannot afford it? How many out there cannot pay for life insurance, but will get their taxes raised so that you can keep yours?
There comes a point when you have to put aside the "me" attitude and think a little more about everyone else.
[edit on 2-3-2009 by jd140]
Originally posted by marg6043
reply to post by HunkaHunka
The question you should be asking yourself is where is the money that they has been taking from you and every other person insured with them.
So far is not transparency on what they have been doing with billions if not trillions of dollars that has been lost in their supposed deals.
They are a corrupted entity that took too much from people and squandered somewhere else.
I know you have a reason to support them but as for me honestly and personally I rather do not do business with corrupted entities.
And that is what AIG is.
Essentially, AIG got into the business of insuring much of the world's financial system against the consequences of a global financial meltdown. It turned out to be incapable of delivering on that insurance—no private company could deliver on it, which is one reason why AIG's business of selling credit default swaps was a scam. And so government has stepped in as the ultimate insurer.
The whole idea of the insurance industry is that if I buy insurance from you, you pay off the claims. Absent ability to pay claims, there’s no business there at all. It’s just fraud. Whether or not it meets the legal standard for fraud, I couldn’t say. But in ordinary language sense, it’s a fraud—you’re selling a service you have no capacity to deliver.
Trial Begins in AIG Fraud Case
The trial of five executives in American International Group's financial fraud case got under way Monday, with the prosecutor saying that AIG patriarch Maurice "Hank" Greenberg set the scheme in motion in 2000.
Greenberg was never charged, but four former executives of General Re — whose loss-portfolio transactions with AIG are at the heart of the case — and one former AIG executive are on the hook for allegedly conspiring to manipulate AIG’s financial statements.
American International Group should be allowed to go bankrupt because keeping it and other sick financials alive on government support risks ruining the US economy, legendary investor Jim Rogers told CNBC Tuesday.
AIG whose $61.66 billion fourth-quarter loss was the largest ever for a US company, received $30 billion more in government funds Monday. The insurer's financial health hasn't improved despite getting as much as $150 billion from the government last year.
"Suppose AIG goes bankrupt, it is better that AIG goes bankrupt and we have a horrible two or three years than that the whole US goes bankrupt," Rogers said. "AIG has trillions of dollars of obligations, let them fail, let the courts sort it out and start over. Otherwise we'll never start over."
On Monday, CEO Edward Liddy told CNBC that the insurer is far more stable and secure than it was last fall but acknowledged that it was "difficult to say" if AIG will need even more money from the government in the future.
Bailing out the banks is going to increase the debt spiral and finally cause the destruction of the world's biggest economy, Rogers said.