AIG bailout: Taxpayers profit $15.1 billion

Discussion in 'Politics' started by Oldguy, Dec 11, 2012.

  1. Oldguy
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    Oldguy Senior Member

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    It looks like we were all wrong. The taxpayers will make a profit off the AIG bailout after all.


    "Taxpayers will soon shed their last holdings in the American International Group, more than four years after a rescue by the federal government during the most chaotic days of the financial crisis….

    …..At the time, critics feared that the company would be forced into a fire sale of assets to repay those loans, a sale that would deeply shortchange taxpayers.
    Instead, the federal government has said that it expects to walk away from A.I.G. with a profit — about $15.1 billion to date, by the Treasury Department’s reckoning. That has followed both a steady stream of stock sales over the last two years and a resurgence in the insurer’s core operations….."

    Bailout Over, U.S. Treasury Plans to Sell A.I.G. Shares - NYTimes.com
     
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  2. Mac1958
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    Mac1958 Platinum Member

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    .

    Personally, I freakin' hate the idea of the federal government buying into a corporation, on multiple levels.

    However, as a reasonable adult -- okay, the "reasonable" part is questionable, and the "adult" status may only be chronological, I get it -- I can't deny the fact that there were precious few options on the table at the time, and that the nation's economy was in literal collapse. This, and other measures taken, had to be done.

    While some -- for transparently political reasons -- want to pretend that the Meltdown of 2008 was nothing more than the start of another typical recession from which we should have bounced back easily by now, the fact remains that it was not, it is not. It took us decades to get here, and it could be decades before its effects are gone.

    So, while I hate this kinda shit, I'm glad the AIG bailout has worked out this way.

    .
     
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  3. Oldguy
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    Oldguy Senior Member

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    I agree completely. Desperate times call for desperate measures.
     
  4. DiamondDave
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    DiamondDave Army Vet

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    Yes.. by all means.. suspend the constitution whenever you 'feel' 'desperate' :rolleyes:
     
  5. Mac1958
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    Mac1958 Platinum Member

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    Define the suspension of the Constitution.

    Describe what you would have done instead. AIG was in collapse, and did not have the capital to pay off around a trillion dollars in credit default swaps. If they didn't, a literal chain reaction would have taken place in banks across the country and around the world, all of whom held that paper.

    Thanks.

    .
     
    Last edited: Dec 11, 2012
  6. DiamondDave
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    DiamondDave Army Vet

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    Absolutely nothing... let the chips fall where they may in a free society.. you have the freedom to fail just as you have the freedom to succeed

    If you feel something needs to be done.. amend the constitution... you need a link to the process??
     
  7. LogikAndReazon
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    LogikAndReazon Gold Member

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    Imbeciles

    Taxpayer funds should never be used to bailout any corporations........."Crisis", or not...

    Thats what bankruptcy reorganization laws are for
     
  8. Mac1958
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    Mac1958 Platinum Member

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    So you can't define how the Constitution was suspended, and you think that allowing a chain reaction of global bank failures at the same time the rest of the domestic financial system was in abject collapse would have been a good thing.

    Nothing else to discuss, I reckon.

    .
     
  9. Dont Taz Me Bro
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    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

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    Where does the Constitution authorize the federal government to use our tax dollars to rescue failed companies?

    You also say it "had to be done." Why? You assume that propping up a failed company and stopping it from going under is a good thing. In the short term, that may be true with less people losing their jobs, etc., but what about the long term effects? We'll never know which new company or existing may have been risen up to fill the hole left by AIG with a better business model. The government's actions also sent a message to company executives everywhere that if you screw up and you're "too big to fail" don't worry about it, we'll be here to bail you out.

    This set a very bad precedent.
     
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  10. martybegan
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    martybegan Gold Member

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    Somewhere else I saw 22.7 billion. In any event the return over 4 years is barely over the rate of inflation. Better than a loss, but all in all a bit "meh"
     

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