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NEW YORK (CNNMoney) -- The Federal Reserve finally has wiped its hands clean of AIG and turned a nearly $18 billion profit for taxpayers in the process.
I'm just a simple man trading a simple plan.
My daddy always said, "Every day above ground is a good day!"
Isn't Timmy the Elf in hot water over telling them to fraudulently fill out their paperwork and application for the bailout? (among his role in the current LIBOR mess).
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
This was initiated September 16, 2008. Geithner assumed the office January 26, 2009.
AIG suffered from a liquidity crisis when its credit ratings were downgraded below "AA" levels in September 2008. The United States Federal Reserve Bank on September 16, 2008 created an $85 billion credit facility to enable the company to meet increased collateral obligations consequent to the credit rating downgrade, in exchange for the issuance of a stock warrant to the Federal Reserve Bank for 79.9% of the equity of AIG.
I'm just a simple man trading a simple plan.
My daddy always said, "Every day above ground is a good day!"
A) With the money that the Federal Government has squandered on banks and corporations and TARP and stimulus, we could have had unemployment insurance for 30M Americans for decades.......
I didn't get a bailout, did you?
B) Even if the system isn't fraudulent and designed to cushion the fall for the fat cats at AIG and on Wall Street Banks (who by the way kept getting their fat bonuses, while the rest of middle class America lost their homes and their jobs)......
Even if we skip that part, there's still the pragmatic and practical reality called risk.
If we have two ways to get to the bottom of a cliff with a kiddie pool of water at the bottom, one is to climb down slowly and the other is to jump and try to land in the kiddie pool, I would choose to climb down slowly.
Bailing out the banks and the auto industry (even if it works out) is akin to you pushing me and me somehow landing in the water without breaking my neck or my back and then walking up and saying "see, I knew that was the smart decision."
If it's a smart investment (in terms of risk vs. reward) then there will be private capital there to satisfy it.
The reason the government was the only idiot willing to step up was because the risk was tremendous and the payout (as we're seeing) was not commensurate.
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
Of course not. But I didn't want them to bail them out in the first place. All they did by bailing them out was encourage them to perpetuate the same behavior in the future. Hell, it likely emboldened them. Now they know that they're truly "too big to fail" and that if they ever get into trouble...good old uncle sam will save them. They can pretty much do whatever they want now, we've told them as much by bailing them out.
"privatize the gains, socialize the losses."
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
The Gov has lost $trillions in bailouts and loans for failed green energy corps.(solindra and many others).. GM has lost 10's of Billions of taxpayer money and is 30% below it's IPO price AFTER going bankrupt anyway...
There should be no bailouts, that's why we have bankruptcy laws..Survival of the fittest...If a company screws up and fails, other companies will buy up the pieces and be stronger and wiser in the process..
We need to bring back "glass steagall" , use bankruptcy laws and throw out Dodd-Frank garbage regulation..Dodd and Frank caused the financial crisis, by FORCING banks to provide sub-prime loans to those that couldn't afford them..(under threat of discrimination, Community re-investment act)..
