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Senator Calls for Suicide? Maybe We Should Just Pay AIG Bonuses

March 17, 2009 By Godfather 4 Comments

aig_logo285Now the AIG scandal is getting out of hand. Yesterday Iowa Sen. Charles Grassley suggested AIG executives should take a Japanese approach toward accepting responsibility for AIG’s collapse by resigning or killing themselves. 

First off, you only need to go back and read my past AIG articles to know I was against giving them bailout money to begin with. I also stated at each disbursement that it wouldn’t be the last. However, as critical as I am of AIG I find Sen. Grassley’s comments appalling. For starters, let’s keep a couple things in mind. [Read more...]

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Filed Under Rants Tagged With AIG Bailout, AIG Bonuses, AIG money, AIG Scandle, Sen. Charles Grassley call for suicide, What are the AIG bonuses

Now AIG is Just Getting On My Nerves

March 2, 2009 By Godfather 5 Comments

pigs285AIG has turned into the worst brother-in-law you could have in the family. A money-losing blob that just won’t go away. The government has turned into the perfect enabler relative that just won’t admit when all is lost and to simply cut bait. 

On October 10, 2008 AIG received $ 85 Billion. It was my first mention of AIG and I wrote “The downside is that I highly suspect this will be nowhere near the amount of money that AIG ends up needing.”  

On September 17, 2008 I wrote about AIG receiving yet another chuck of cash. This time it was $40 Billion. I wrote “Matter of fact, I am going to say it again; I highly suspect this STILL will not be the end of it. Companies like this seem to always keep coming back to the government trough (I hope I am wrong).” 

Now, AIG is back again (surprise!) and the government is handing them another $30 billion. More taxpayer money going to a company that can’t seem to get their sh*t together. 

When will government understand bailing out companies, in a capital market, is not the right answer? Most of the bailout companies, I am sad to say, will still end up failing. The only catch is that they will blow through billions of taxpayer dollars before they do fail! 

Let them fail and the next company, that is trying to do everything right, will step up to the plate! 

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Filed Under Economy Tagged With AIG, AIG Bailout, Enough Money to AIG, Stop Giving AIG Money

AIG Needs More Money?!

October 10, 2008 By Godfather 4 Comments

The AIG bailout is getting more and more representational of a monumental screw- up than a legitimate government assistance bailout.

If you remember, the government agreed in September to give $85 billion to faltering AIG to avoid a collapse in the economy (mmmm, how did that work out for you?). [Read more...]

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Filed Under Economy Tagged With $85 Billion to AIG, AIG, AIG Bailout, AIG Needs More Money?, Another $37.8 Billion to AIG, Does AIG Need More Money?, Government Spending, Government to bail out AIG, Insurance Company Buyout, More Money to AIG?, Politics, Wall Street

Bailout of US Economy is Dangerous “Preach” not “Practice”…

September 19, 2008 By Godfather 10 Comments

When Mexico was in serious financial straights the US said the (Mexican) government needed to stay out of the way – the market knows best. 

When Russia was on financial brink, again, the US said government intervention should never happen – you should be like us.

When Thailand was….nevermind…you get the idea. 

We are real good at telling other governments they need to stay out of their country’s “free market” affairs even when the result includes joblessness and domestic turmoil. The economic system will correct itself…well, unless it happens to us – then the rules change. 

The Federal bailout is approaching (and will pass) the Trillion-Dollar mark. What is on the table so far? 

$300 billion for failing mortgages.

$200 billion loans to banks

$200 billion to buy Fannie Mae and Freddie Mac

$87 billion to JPMorgan for financing Lehman trades

$85 billion to buy (79%) of AIG

$29 billion to JPMorgan to buy (failed) Bear Stearns 

Is this a glimpse of a US move towards Socialism? Well, the government will now basically control the lions’ share of mortgage lending (Fannie Mae and Freddie Mac) and Insurance (AIG).

I think Sen. Jim Bunning (R-KY) summarized it pretty well. “The only difference between what the Fed did and what Hugo Chavez is doing in Venezuela is Chavez doesn’t put taxpayer dollars at risk when he takes over companies. He just takes them.” 

Think about it. The US, with taxpayer dollars, has taken over failing companies for billions of dollars. If they are right, and companies rebound, the government has serious intervention into the once private sector. If they are wrong, and the companies fail, taxpayers deal with more loses and ongoing repercussions. Sounds like a no-win situation to me.

I don’t think we should have bailed the companies out. Yes, I know jobs would have been lost. I know the economy would have suffered as it worked its way back to manageable levels. But I also know that “just print more money” is not the path to recovery. 

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Filed Under Economy Tagged With Add new tag, AIG Bailout, Government Mortgage Bailout, JPMorgan to buy Bear Stearns, Politics, Sen. Jim Bunning, US Bailout Dangerous, US Economy in Trouble