The Systematic Draining of America's Economy, Culture, and Pride.
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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Want to see the new Bailout Bill including some $110 Billion in extra added pork thrown in by the Senate?
You get 451 pages of our government in action. Click Here to see the actual Bailout…
Now back to the House…
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Until this week, it would have been unheard of for the government to bail out an insurance company. Oh, how times have changed….
The government is about to do just that.
Regulators know with Bear Stearns and Lehman (who filed bankruptcy on Friday) going under the financial world does not end. If AIG was to go under? Well, the damages are far reaching and, in some ways, no one really wants to even crunch the numbers.
The deal? The government will lend AIG $85 billion dollars and receive a 79.9% equity stake.
The upside, if there is one, is the government finally has a chance to find alternative methods (other than direct taxing) to pay down the deficit. Once AIG turns the corner and starts making money, so will the government (much like Fannie Mae and Freddie Mac). The downside is that I highly suspect this will be nowhere near the amount of money that AIG ends up needing.
In the meantime, I am going to see if I can start a company, get overwhelmed with greed, make millions, then have the government come bail me out!
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