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AIG: Doomed to fail? VERY important read.!

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posted on Apr, 28 2009 @ 09:12 PM
CNN Money Source Link.

NEW YORK ( -- Once a titan in the insurance world, AIG is a shadow of its former self, and experts say the company is likely doomed for failure.

The company had to give up more than it had anticipated to pay back taxpayers because of the horrid credit environment, and analysts believe AIG may be giving up too much for it to survive on its own. Not that there was much choice.

So much for the "Too Big To Fail" doctrine. What bothers me the most about this is the fact that the government prior to the initial bailouts, bailed out AIG. Not only did they bail them out then, but they in returned bailed them out not one more time but two more times. That is a total of THREE bailouts. None of these bailouts were approved by the general population.

We keep on seeing news that the worst is mostly over. How is this? We were told that if AIG fails so will the US economy. Is this still the case?

My point to be made is if in fact they were too big to fail, why did so much money not aid them in recovery. The real kicker of points to be made is that if in fact the government was LYING to us in order to help "buddies", can we now call them out for it?

So one of a few things if not most, happened here or is going to happen:

The government lied to us and exaggerated the impact of AIG's failure in order to help "buddies" leach more money off of the people.

AIG is proof positive that throwing money at the problem will not fix the problem.

AIG will fail and with it take the US economy with it. By the way this is what the government said will happen if AIG fails.

The US people will not get paid back for their investment.

Are there any points I am missing?

The evidence of this very ugly crime is rearing its ugly head as the year goes by. I think as more of these points get made, more people will wake up and start asking questions. If AIG fails then everyone needs to be asking ALOT of questions fast.

[edit on 28-4-2009 by LeaderOfProgress]

posted on Apr, 28 2009 @ 09:27 PM
CNBC News Source Link.

In a record bailout of a private company, the government on Monday provided a new $150 billion financial-rescue package to troubled insurance giant American International Group, including $40 billion for partial ownership.

I personally think that it was more than this but either way 150+ billion dollars is alot of money. How could this company not be doing well?

posted on Apr, 28 2009 @ 09:55 PM
reply to post by LeaderOfProgress

i hope more people will read this ... some important topics (like this) are being over looked because of the swine-flu sensation ...

was this on the news? like television? or only on the net?

posted on Apr, 28 2009 @ 10:00 PM
On the net. See the link at the top of the original post. It came from CNN Money. The quotes are from their story. The rest are my thoughts on the matter. I do think the "swine flu" is killing alot of stories that are very important.

posted on Apr, 28 2009 @ 10:13 PM
reply to post by LeaderOfProgress

Good article and post, thanks for putting it up.

One further fact to note...despite all the (quite justified) rage about the bailouts, the hundreds of billions being spent to keep these corpse-like companies animated is literally PENNIES ON THE DOLLAR compared to the TRILLIONS the FED has spent buying up cruddy paper, "injecting liquidity," buying bonds and stock, and acting in various other shadowy ways to "prop up" markets and companies. This stuff barely makes the news, or if it does it is shunted down to a blurb on page seven of the paper or whatever rather than being a top story as it should be.

Strictly speaking, of course, the Fed is a private group so its "injections of liquidity" and other shady moves are not literally taxpayer money the way the bailouts are. However, the sheer scale of the credit creation involved is extrordinarily destabilizing and has the potential to create a "stealth tax" through inflation (although the jury is still out on whether the money being created matches/exceeds the phenomenal levels of money and credit that have vanished from balance sheets during the crisis, extrordinary as it may seem).

And with the Fed on the hook for trillions in worthless assets, its really only a matter of time before the Fed itself gets into some kind of kinky trouble that really will have the potential to bring down global financial architecture in a much more fundamental way than what we are seeing now. And again, very little of this makes the news, even though the sums involved are an order of magnitude or two above the bailout amounts.

Click here for a decent and recent article on Fed woes and its exploding balance sheet of toxic garbage. The article deserves to be widely read.

[edit on 4/28/09 by silent thunder]

posted on Apr, 28 2009 @ 10:20 PM
Hey the FED could end up needing a bailout from the IMF. Then what would happen? What would be ironic would be if the FED said the same thing about itself. "We are too big to fail. The world economy will fail if we do."

posted on Apr, 28 2009 @ 10:32 PM
IMO this should be front page news all over the place. I feel heart sick, really. I keep returning to the thought that Ive sold my children and likely their children to a corporation so I can keep on in my day to day, living the rat race life.

Honestly, many saw it for what it was when the bail outs started and we did nothing, now who can disagree. If AIG is allowed to fail then (and I hope you take this personally unless I see your name on the news) you failed, you are a coward right along side with me.

I dont know what to think any more. The more I hear and see of what is going on, the more desperate I feel and the more desperate I feel, the more determined I am that any loss on my part attempting to make a change would benefit those that come behind me far more than simply accepting what I think is coming our way.

posted on Apr, 28 2009 @ 10:35 PM

Originally posted by LeaderOfProgress
CNBC News Source Link.

In a record bailout of a private company, the government on Monday provided a new $150 billion financial-rescue package to troubled insurance giant American International Group, including $40 billion for partial ownership.

ehhh the date of this link is nov. 2008

posted on Apr, 28 2009 @ 10:37 PM
We need to let AIG fail so the economy can fully collapse and we can finally get rid of this horrid monetary system.

posted on Apr, 28 2009 @ 10:55 PM
Several of us tried to get the bailouts to fail. When congress only listens to the corporations, it becomes hard to yell loud enough for them to listen to us little people. I agree the people should know about the failure of the bailout of AIG. The key thing is getting past the "swine flu" stories all over the MSM and even here.

posted on Apr, 28 2009 @ 11:29 PM
Video of a ABC program called "Round Table" the discussion is AIG.

All I can say is WOW..!

What I really want every one to see and hear is what is said at exactly 6 minutes into the video.

Jim Ellis, Assitant Managing Editor, Business Week Magazine:

"Wall Street doesn't do what is good for the country, Wall Street does what is good for Wall Street."

That is impressive and should be duley noted by everyone in the US. That statement alone carries so much truth it is unreal. He flat out stated that Wall Street doesn't care about the little people. I know and believe this but so many do not.

[edit on 28-4-2009 by LeaderOfProgress]

posted on Apr, 28 2009 @ 11:56 PM
This is too important to let go of. We need this flagged up. Almost every story on the front page is "swine flu this swine flu that". Not that the "swine flu" is not important, but all things considered, there is other very pressing news coming out as well.

posted on Apr, 29 2009 @ 12:18 AM
I agree we need to let them fail and I bet it was known from the start of the bailouts that they would fail. And we let it happen, they secured the future for themselves while the little guy foots the bill.

We've failed and we are cowards who are asleep at the wheel. Most people I know are aware that the gov has been hijacked and we do nothing.

2 years ago....some food for your brain

I am impressed to express with satirical wisdom the folly of our people, as we are led to ignorance by the patronizing governing body of today.

We are no more at ease with our laws that tie than we were with men who were quick to the draw which would impose justice found acceptable by the majority.

By our lazy receipt of rule we have found ourselves in position of little option, no more than one can bear in a court for the duration of his funds. It is by this rule that the affluent have taken our voice and hidden our way, for they unaided can endure the corruption created for their own aspiration, while the represented are personified solely as a faint reminder of what was once our freedom.

We are tied by the hands and guided by chain to the arrangement of surrender seldom looking where we are led so long as the place we are kept is pleasing to our neighbor.

Inquiry not permitted we are exposed to idle our minds with the filth of the artiste so kindly revealing to us the epiphany of dreams unrealized. We are made known what is to be accepted by peers far seen, forgetting our foundation has wasted away.

Numb to our conscience we succumb to our leader, so long that discomfort does not lay in our bed. While our voices praise the immoral and crude we unwittingly fuse as one, never to be doubted of our intentions, while we are spat upon for endearing what eagerly waits inside a man’s heart.

Freedom was once a gift for all, to awake and embrace, to be converged upon by masses unblemished by fools. Forged by God and bought by blood, draped with a mother’s tear, and folded in the threads of the American flag.

We are numb to our fervor once gleamed upon as life, forever coveting that we don’t have. Pride of life has gone to die as a wounded eagle whose cry is heard only by those on their own path to death.

For what cause does one need express his discontent? Whose ear shall hear? Surely not the man who’s toilsome labor is consumed by the hunger of the wanton. Whose life work is a mere budget note to them that devour.

What wind remains for him who can not feed his own soul and how far will he travel before finding himself alone?

I implore you to question have you lived if you are not willing to die. Have you sacrificed when you had nothing to give? These are the expressions of those who gave us liberty. Not put into words but lived with each breath by them that endured that which they could not. A wind passed on by blood, embedded in man’s soul,

destined to be repeated as it has long been forgotten.
To be free.

posted on Apr, 29 2009 @ 12:47 AM
This is a reall good post you should probably start a thread in the rant section. It would be a good place to write pieces like that. I agree whole heartedly with it.

posted on Apr, 29 2009 @ 06:49 AM

This is all I have to say to that. These people are all criminals and the government is in collusion with them.

posted on Apr, 29 2009 @ 09:23 AM

Originally posted by LeaderOfProgress

"Wall Street doesn't do what is good for the country, Wall Street does what is good for Wall Street."

That is impressive and should be duley noted by everyone in the US. That statement alone carries so much truth it is unreal. He flat out stated that Wall Street doesn't care about the little people. I know and believe this but so many do not.

In theory, what was taught to school children in good ole American schools, Americans invested in American companies, becoming shareholders who had a personal interest in how a corporation did business.
What was good for GM was good for America! Capitalism combined with patriotism!

The reality...Wall Street turned into a Las Vegas (which has one nickname of "Lost Wages"). After the early 1980's American corporations, having gone international or bought out by foreign interests, no longer wanted to be known as "American". What was good for Wall Street was no longer necessarily good for America. We've been global for quite awhile.

Traditionally, the Republican party was the party of Big Business, the Democrats took care of the "little people". It used to be said, "Want to live like a Republican? Vote Democratic." As corporations bought more controlling interest in Washington, they could control the process of deregulation, getting gov't off their backs.

The little people have been snookered for years into voting against their financial best interest. While many Americans thought it was good to cast their precious vote on moral values, their vote was used to clean Wall Street of regulation and keep a lid on the oversight.
In theory, all those 401Ks were great. In reality, Wall Street didn't care about the little people. Hell, if Wall Street could make money off of Communism, we would all have been Communists!

The party the Little People were invited to turned out to be an investment scam. The party is over, came crashing down, and now the Big Boys (wherever on the globe they are) are getting their money. They got the gold mine. and we got the the old song goes.

posted on Apr, 29 2009 @ 11:11 AM
At least half a year too late, the simple wisdom of letting those failing go under is now haunting us. When companies go into receivership, assets are sold off, there is some recovery of money dispersed. More importantly, the loss of competition strengthen those in the same markets, and the door is open for new ventures with lover overheads and expectations.

The loss of General Motors, for example, would be a boon to car manufacturers everywhere.

But things get incredibly complicated when businesses go under. GM has been providing pensions and healthcare for millions of retired employees and their families for the better part of a century. Who is going to pick up the tab on that? The government by default. So the first reaction was to keep the wheezing grossly inefficient machine running a bit longer in the hope some miracle would happen.

And we also know the lobbying power of those megaliths like AIG is positioned to convince politicians that allowing them to go bankrupt was in no one's best interest.

Had there been a series of massive failures last fall, the pieces would have been picked up in the first few months of this year.

The economic situation might have been depressing, but no more or less bleak than it is now. Massive layoffs in the tens of millions, consumption at an all-time low, the government committed to trillions with little indication it can meet those obligations readily.

A quick painful Depression level downturn could have taken place and we would be struggling out of the pit right now. Instead we opted for a slow painful prolongation and are digging down even deeper.


posted on Apr, 29 2009 @ 11:21 AM
We are just propping this thing up until we can liquidate it all into pieces or have private capital (see chrysler) buy up the debt, with % stake in corp (or what is left of it)

While I dont really disagree with the fundamentals of the company, this is def. NOT going to bring the USA down with it.. that is ridiculous(as we can print as much money as we need, which is a whole other story)

Anyways, I guess my point is USA will not default b/c of AIG

posted on Apr, 29 2009 @ 12:10 PM
Another key part of the puzzle I call the "AIG Scandal" is that I, with out a doubt, think that they knew AIG would not make it through. There was just too much secrecy going on about the final destinations of the "bailout" moneys that were given to AIG. The FED nor AIG would release any info as to who got what funds. In fact they defended not releasing the information vehemently. This scandal needs to be brought to light by the MSM for sure. We were given the bait and switch.

[edit on 29-4-2009 by LeaderOfProgress]

posted on Apr, 29 2009 @ 12:32 PM
AIG is going nowhere. Their board of directors is dominated by members of the cfr.

*Feldstein, Martin S. - President and CEO of National Bureau of Economic Research; former chairman of Council of Economic Advisors (1982-1984); attended at least 8 Bilderberg meetings; member, cfr

*Offit, Morris W. - Co-Chief Executive Officer of Offit Hall Capital Management LLC; a director of AIG; member, CFR

*Hills, Carla A. - former U.S. Trade Representative (1989-1993); former Secretary of Housing and Urban Development (1975-1977); Vice-Chairman of CFR; director, AIG

*Futter, Ellen V. - President of American Museum of Natural History; former President of Barnard College; AIG Director; CFR Member

*Holbrooke, Richard C. - former Ambassador to United Nations and Germany; vice-chairman of Perseus, LLC; Board Member, AIG; CFR member

*Zarb, Frank G. - former chairman of the NASDAQ Stock Market, Inc.; director of AIG ; CFR Member

*Greenberg, Maurice R. - former Chairman and CEO of American International Group (AIG); CFR Member

I highly doubt these guys are going anywhere....

[edit on 4/29/2009 by cautiouslypessimistic]

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