AIG 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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I suppose this is where you look for some witty insights to my mind. A "bio" of sorts. Here is the deal... I ride motorcycles, smoke cigars, golf, kayak, fly, race my car through the mountains, write (a lot), and travel extensively. I am almost old enough not to care what other people think about me...almost. ~ Godfather
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