After the Federal Reserve Board couldn’t get anyone to create a pool of $75 billion to loan to AIG, they stepped in and essentially bought the company. That means that we (the taxpayers) are now owners of almost 80% of this severely screwed up insurer.
Start praying that there aren’t too many more insurance, investment or other financial institutions that have gotten themselves in over their heads in bad real estate investments. If so, the Iraq war may start looking like a financial bargain compared to what will happen once the actual elected idiots representatives start playing politics with this one and start writing “legislation” that will “help” us out of this mess.
The only good news today was the fact that the Fed held rates steady in spite of the extraordinary events in financial markets. I guess they knew they were going to be announcing one of the boldest corporate rescues in US History and they couldn’t afford two big moves in one day.
Let’s see which Presidential candidates jumps on the “common sense” regulation bandwagon (read: government power grab over our markets).
I have a guess that it won’t be the Libertarians.
September 17, 2008 at 4:29 am |
[...] $85M loan to AIG; Time to fire Paulson Lehman collapse – AIG on the way A Time to choose – $85 Billion to AIG, oh my god Possibly related posts: (automatically generated)How Will The Fannie Mae/Freddie Mac Fallout Affect [...]
November 10, 2008 at 2:18 pm |
[...] original $85 Billion ”bridge” loan was reduced to $60 billion (at a lowered interest rate), but they got a new $152.2 billion [...]