Aig
- Thread starter MUSKYMAN
- Start date
Guess we don't subscribe to capitalism here anymore. Creative destruction is no more. Bye bye actual risk taking.
I want to buy more wrecking yards. So many in fact that I will owe billions of dollars on all of them. Then convince the government that if I go out of business I'll take the wrest of you with me.
Great business plan. They must teach that in Harvard.
Well at least we may get socialized healthcare afterall.
Great business plan. They must teach that in Harvard.
Well at least we may get socialized healthcare afterall.
Actually, the Gov't may make some $ off of this deal.
the $85B is at 11+%, and the US owns 80%. Sell off a bunch of assets, reorganize, and the company will likely be ok. It's giving AIG time to sell it's good assets at a reasonable price, instead of fire sale rates.
I think that the feds are worried about a complete financial melt down. I think they hope that an ORDERLY break down of the bad parts will be ok, but a collapse of many institutions would trigger a panic.
the $85B is at 11+%, and the US owns 80%. Sell off a bunch of assets, reorganize, and the company will likely be ok. It's giving AIG time to sell it's good assets at a reasonable price, instead of fire sale rates.
I think that the feds are worried about a complete financial melt down. I think they hope that an ORDERLY break down of the bad parts will be ok, but a collapse of many institutions would trigger a panic.
As much as I am tired of bailing out the Wall Street greedmeisters (thieving bastard know-it-all assholes that they are) I do think that AIG was a different case.
I am not saying that AIG is not a bunch of "thieving bastard know-it-all assholes" in fact when I was on a CC with them two weeks ago they were as "thieving bastard know-it-all assholes" as ever.
BUT
They do perform a vital function in the capital markets that create opportunities for every kind of industrial project and if they went down the tubes it would affect almost every facet of the global economy plus that would leave us only with Lloyds of London who are just "thieving bastard know-it-all assholes" with an accent and that would suck because they would have no competition and would screw us worse than they already are.
So lets bail out the "thieving bastard know-it-all assholes" but I better not hear one damn peep out of them about how they are going to have to suffer through with only a six figure bonus at the end of this year.
I hate Wall Street masters of the Universe with a purple passion but I would not make a living without them.
I am not saying that AIG is not a bunch of "thieving bastard know-it-all assholes" in fact when I was on a CC with them two weeks ago they were as "thieving bastard know-it-all assholes" as ever.
BUT
They do perform a vital function in the capital markets that create opportunities for every kind of industrial project and if they went down the tubes it would affect almost every facet of the global economy plus that would leave us only with Lloyds of London who are just "thieving bastard know-it-all assholes" with an accent and that would suck because they would have no competition and would screw us worse than they already are.
So lets bail out the "thieving bastard know-it-all assholes" but I better not hear one damn peep out of them about how they are going to have to suffer through with only a six figure bonus at the end of this year.
I hate Wall Street masters of the Universe with a purple passion but I would not make a living without them.
SGaynor said:
Sure beats bankruptcy IMHO. I wish there were other options but as long as the gov makes sure it gets a return on the taxpayers money then it is a little easier to accept.
flyfisher11 said:
I sure hope your right leg is anchored on firm ground because your left foot just stepped onto the slippery slope of communism
MUSKYMAN said:I sure hope your right leg is anchored on firm ground because your left foot just stepped onto the slippery slope of communism
HAHAHAHAHAHA
Muskyman just called Flyfisher a communist. I never thought I would see this day!
HAHAHAHAHAHA
Owning a *financial* wrecking yard...might be a profit in that. Barclay's just "bought" Lehman for a paltry $250 mil. By my calculations, considering Lehman's supposed asset valuation, that's .03 cents ($.0003....) on the dollar. What a deal! I'm kind of surprised the Chinese didn't try to scoop 'em up like a last-second E-bay bid....
landrovered said:
Nah...I was just bringing up the point that the us goverment is not suposed to own anything that turns a profit
Mike and I are pretty similar in alot of ways I am willing to bet
I do have wonder about the quality of the 'assets'. Barclay may have paid $0.03 on the dollar on paper but we have moved from liquidity issues to insolvency, where the debt exceeds the assets.
Example
Wells Fargo takes Lehman Related Charge
In addition, those assets are declining in value daily.
Example
Wells Fargo takes Lehman Related Charge
Wells Fargo & Company (the Company) will record other-than-temporary impairment and take a non-cash charge to earnings in third quarter 2008 for investments in senior unsecured notes and perpetual preferred securities issued by Lehman Brothers. The Company’s investments in the notes and preferred securities are included in securities available for sale at a cost of approximately $90 million and $109 million, respectively. The notes currently trade at 25-30 cents on the dollar. The preferred securities currently trade at less than one percent of par value.
In addition, those assets are declining in value daily.
MarkP said:
Not three cents on the dollar. Three *one hundreths* of a cent. POINT 03 of a cent.... That's what you get dividing 850 billion or so into the supposed sales price of 250 million....
MUSKYMAN said:I sure hope your right leg is anchored on firm ground because your left foot just stepped onto the slippery slope of communism
School me. Doesn't the gubment loan money all the time? Are they only to break even? Seriously, I spent too much time in the military. I honestly do not know how this works.
Cheers,
Mike
Pigs get fat. Hogs get slaughtered.
On a side note I am quite tired of people buying failed companies with my money. I would not do it but someone smarter than me thinks it is a good idea.
Didn't this all start because of overspending based on over valued equity?
On a side note I am quite tired of people buying failed companies with my money. I would not do it but someone smarter than me thinks it is a good idea.
Didn't this all start because of overspending based on over valued equity?
I HATE PONIES said:
Yep and irresponsible citizens buying more than they could afford. Personal responsibilty has to factor in this too.