Originally Posted by jhffmn

I can't believe they let Chris Dodd anywhere near the bill.

Originally Posted by ocean_314

Well (*)(*)(*)(*) those Dems are so brilliant. So I should go out a run all my credit cards up to the max and then dump that debt onto the government. I could use a lower mortgage so I guess I just wont pay mine for a couple of months and let a judge tell WaMu that I don’t have to pay as much.

Geez what a wonderful life!!!!! Or did congress eat a few to many of the wrong mushrooms and go down Alice’s rabbit hole. Who was stupid and voted for these fools?

By the way the bail out... When it’s all done and AIG is sold off the government will make a profit. When all those mortgages are sold off in a few years the government will either break even or make a profit. The problem now is that no money is being let by the banks, so this bailout will start the lending again and then the housing prices will bottom out and slowly start to increase

Originally Posted by klipkap

Ok ... who mentioned mushrooms and Alice in Wonderland? Why do I ask? Here are some key concepts that dont fit the glowing future for AIG: 'compound interest'; 'cost of capital'; 'lost opportunity'; 'public debt servicing'; 'foreign debt risk'.

And there are other issues at stake on a much closer horizon than a presumption that the bail-out will turn a profit some unspecified day, given those ugly financial realities listed in brackets above.

But there are even more worrying uncertainties. Let me provide you with a quote from Texas Republican Representative Jeb Hensarling to illustrate this:

"Congress is being asked to support an uncertain entity, costing an uncertain amount of dollars, for an uncertain duration," he said. "My fear is that taxpayers will be left with the mother of all debts, the federal government becomes the lender and guarantor of last resort, and our nation finds itself on the slippery slope to socialism."

Now THAT seems much less of a fairy story. And .... it fell from the lips of a Republican.

Oh, and guess who is picking up the tidbits from this finanacial debacle - this fiasco resulting from unregulated consequences of the Republican Gramm-Leach-Bliley Act - yep, Mitsubishi and top Japanese brokerage group Nomura Holdings.

Not only can competitor nations such as China, Russia and Japan cripple the greenback and our economy by demanding only 15% of our debtors paper that they hold (2006 conclusion - International Conference on Global Financial risks, Geneva, Switserland), but they are owning more and more of our financial machine.

People, we need to stop spending so much, and the two top extraordinary candidates are the bail-out and the military war chest. Our public debt is the huge catch-all for many collosal mismanagements of our country that has been swept under the carpet of voter ignorance.

Originally Posted by intertemporal

for those of you who follow close, you guys would know that there is absolutely no possibility that government is gonna exercise AIG warrant, because, 1st, government doesn't wanna do that unless it is totally the last option,,, who knows what will happen in 2 years? u know? 2nd, AIG only needs to sell 8.5% of its assets in order to pay back government 85 billion.

let's say this market is low, and the value is discounted by half,,, and there's interest too,, AIG will approximately sell 20% the most,, of its assets to pay bak government.

i could be wrong.
but hey,just F.Y.I, i emptied my cheque account, and dumped all my money on AIG stock.

Originally Posted by ocean_314

Wrong AIG is one of my wife's cleints. They are all in a panic there. They know that they are going to be sold division by division and they dont know who is going to buy them and if they will have a job tommorrow.

Originally Posted by itraveltheworld

I agree with you wholeheartedly klipkap. The problem is, what is the alternative ?? I would love nothing more than to watch each and every institution that over leveraged itself with this bad paper go down in flames. Taking with it all the CEO's, upper-management, mid-management, lower-management, office drones, security guards, and janitors. And there is the catch. They would all be out of work and act as a drag on the economy. Not to mention the resulting global financial chaos that would ensue if the financial pillars of our economy were allowed to crumble. We have no alternative but to inject liquidity into the market. As I'm fond of saying, its a big sh*t sandwich and we all get to take a bite.
So now our focus must be on how do we do this responsibly, with the greatest possibility of return to the taxpayer. While simultaneously punishing those responsible to the fullest extent possible. If I were Dodd I would have gone further and ordered the restitution of 5 years salary and bonuses of any CEO asking for a handout. On top of that I would have mandated that no debt would be bought at greater than twenty-five cents on the dollar. Time to send a message that those who are responsible for bad business will be punished.

-traveler-

Originally Posted by Nicholas the 8,358,353rd

What's incredible is how you are deluded into believing Democrats are responsible. Maybe you should take a political science class on Cause & Effect.

The Republicans on this site are not credible. Everything is the fault of the Democrats, even when it isn't their fault. It's like you have no actual grasp of what's going on, and you simply accept whatever your Republican deity tells you.

Originally Posted by intertemporal

if your wife knows so much,
why didn't she tell you to short AIG when it was 80.

if your wife knows so much,
why didn't she tell you to buy when it was $2, and it is $5 right now.