Apparently the Americans workers over at AIG were not fundamentally strong, given how the fed just announced an 85 billion loan to AIG, where the government now controls almost 80% of the company.
When I woke up a year ago...I know the first thing in my mind, was darn it, I wish I was part owner in an insurance company. And apparently now I am.
http://money.cnn.com/...
What I find most amazing about this, is that for all the talk about personal responsibility, there seems to be very little talk about corporate responsibility. As an individual I can't file bankruptcy and hope that the government will bail me out. No, if I file chapter 7 or 13, the government expects me to pay back my debts at least partially.
Granted, I knew that the government would have to bail out AIG. What other option was there? Have the biggest insurer in the nation go down the toilet?
I personally love this line...
Taxpayers will be protected, the Fed said, because the loan is backed by the assets of AIG and its subsidiaries. The loan is expected to be repaid from the proceeds of the asset sales.
Particularly after we discover this...
Officials decided they must act lest the nation's largest insurer file bankruptcy. Such a move would roil world markets since AIG (AIG, Fortune 500) has $1.1 trillion in assets and 74 million clients in 130 countries.
So once again, the government has proven to me that they believe in socialism for the corporate giants, but capitalism for you and me.
But, as McCain says, the fundamentals of the economy are strong, providing you don't work at Bear Stearns, Freddie Mac, Fannie Mae, Merrill Lynch, Lehman Brothers and now AIG, if you do? Well, the government will help you, and by help, I mean make sure that the CEO doesn't lose his pension.