Posted on 09/16/2008 4:22:50 PM PDT by rabscuttle385
The Federal Reserve is considering an $85 billion rescue for embattled American International Group that could leave the government in control of the firm, according to people familiar with the matter, though the structure of a deal remains unclear.
(Excerpt) Read more at online.wsj.com ...
A $ Trillion in assets? But what are the liabilities?
Lehman had $635 Billion in assets, but $613 Billion in liabilities, and some of those assets were surely derivatives that were priced at a higher value than what reality was.
Well there goes some more taxpayer money down the toilet. Thanks Dubya for minding the store. (sarcasm off)
When will these bail outs stop!
The Federal Reserve will be using its own money for a bridge loan and will get warrants in return. They will probably end up making money on the deal.
Anyone heard a peep out of master of finance, Mr. Conservative himself, and founder of Bain Capital, Mitt Romney? I know he was all for giving GM, the Ford family and the Unions 25 billion. He got his hack Utah buds a half a billion.
(insert crickets here)
Bail ME out for hell sake... I need an HDTV.
K Street and Wall Street want you to mind your own business. The real players will work this out. The little people should just worry about their kids’ soccer games.
The price doubled because of the credit agency downgrades.
What’s even more atrocious, is that AIG had a private sector offer on the table and they turned it down.
That’s the outrage. Now the taxpayer bought them for twice the bill, instead.
In Soviet America, insurance buys YOU!
All kidding aside, it looks like someone convinced Bernanke and Paulson that AIG is too big to fail. AIG insures a lot of credit risk for other banks, allowing them to reduce the amount of reserves they are required to have. The insurance is worthless if AIG were to go belly-up and the global finance system might implode as every major bank scrambles to increase their reserves.
The Wall Street Journal is reporting that the federal government is putting in $85-90 BILLION to save AIG. Anyone know where that money is coming from? I mean does the government have that much cash just sitting around? Or are we just borrowing it all from Russia and China?
We’re borrowing it.
They don’t have our money they just print 85b and devalue what they didn’t take from you.
The news I’m seeing on live Dow Jones Newswire is not calling this a “loan”.
It’s being called a “rescue” that “leaves the government as the controlling party of the firm”
Somebody please remind me what country I live in again?...
The Treasury and Fed are out of control, and George Bush is not doing a thing about it.
ding, ding,ding.
That tells us something.
But, of course, the gooberment that brought us Urban Renewal, Model Cities, Urban high rise slums, the War on Poverty and 70 trillion in just Federal obligations, can pick a winner when it sees one.
Oh goody!
Did you think that GWB was a free market man? LOL!
Paleassssssse. If the private equity markets didn't want to bridge loan this disaster why should the taxpayer? The principal of moral hazard had to be instituted by a Darwinian imperative if not the entire system collapses. If the fed steps in based on a hypothetical risk that a domino effect will ensue as a result of AIG collapsing then the signal to global markets and specicifically to stewards of powerful financial institutions will continue their reckless disregard.
Somebody has to pay the piper. It shouldn't be Joe six pack.
No, it just gets tiring grabbing my ankles every other day.
Up next...General Motors
We really should save the trees and go to electric money. One dollar per electron.
(does any one know how many electrons are in a laptop’s battery? I could be rich! Rich! Rich! Rich!)
I hear ya!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.