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Fed going to bail out AIG

Discussion in 'Uncategorized Threads' started by Bisi, Sep 16, 2008.

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  1. Bisi

    Bisi TS Member

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    Just heard on the news that the Fed is going to bail out AIG. 85B!!

    This crap has got to stop!

    Who is going to bail us out???????
     
  2. crusha

    crusha TS Member

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    Alas, now the Fed has placed itself in the role of playing "God" with firms on The Street...this one lives, this one dies...


    Geez, I wish Grammie was still here.


    "May you live in interesting times." -F. Nietzsche
     
  3. spitter

    spitter Well-Known Member TS Supporters

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    Just as Cramer says... bail 'em out and then do a systematic liquidation. Nothing for the stockholders, they got their due, but AIG is one of those situations you can't allow to flat right now.

    AIG has too many fingers in too many dikes domestically and internationally...

    Government bailed out Chrysler on a short term basis and that worked out OK.

    Hey, its only money!

    Jay
     
  4. nspktr1

    nspktr1 TS Member

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    Largest insurance company in the world. They own several companies that have cash on hand to the tune of several billions. They have the money to solve their problem internally. They just need someone to run the company that won't run off with the money or make bad investments.
     
  5. BIGDON

    BIGDON Well-Known Member

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    nspktr1: You know not of what you speak. First of all they don't have cash on hand. Secondly most of those billions are in surplus which has to be maintained by regulation of variouse insurance bureaus to assure liquidity or the ability to pay claims. Actually they have assets over 1 Trillion. But due to heavy Govt. regulation they can't just move that money around, it's more complicated than it seems but it's there to protect their policyholders. They also pay out $73 million dollars a day in claims.

    It's not all bad and it's a loan (actually a line of credit) not a gift.

    Don
     
  6. JBrooks

    JBrooks TS Member

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    If AIG went under millions of completion and surety and fidelity bonds would have been worthless halting everything from construction projects, both public and private, to things like janitorial services.

    It is a whole different animal than Lehman Brothers.

    It was a good, smart move.
     
  7. Quack Shot

    Quack Shot Active Member

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    Looks like the Government just learned how to write bad loans too! It seems to be an epidemic! Let's get Barney Frank to run AIG. That might be worth the money to watch. I think his committee was asleep when this all started years ago! He must have been busy turning "Pages" at the time.
     
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