Aig Bailout Nets Us Gov. $22.7b

[Ravariel]

So, news broke today of everyone's favorite topic: the financial bailout. The US government will sell it's remaining stock in the Insurance company AIG. The sale, along with repayments made by the company itself, is projected to net the US government $22.7 BILLION in profit.

However, some say that the future tax breaks will offset the profit and turn the bailout into an eventual loser for taxpayers.

I have to admit, this is a better outcome -- even if the naysayers are right and the profit is outweighed by future loss on tax revenue -- than anyone expected. I was one of the grudging supporters of the bailout, saying that it was shameful that it was necessary, but imploding the entire world economy in a few weeks was the obviously worse alternative.

Now that the bailouts have been, for the most part, a success. What are your thoughts on the situation? First GM repays the Government with interest (though the game of chicken the market is playing with GM's stock prices due to the pending (eventually) sale of the governments shares is obnoxious), now AIG nets taxpayers 22billion. Seems to me that these have been a rather astounding success.

[morefngdbs]

At 12/11/12 09:34 PM, Ravariel wrote: I have to admit, this is a better outcome -- even if the naysayers are right and the profit is outweighed by future loss on tax revenue -- than anyone expected. I was one of the grudging supporters of the bailout, saying that it was shameful that it was necessary, but imploding the entire world economy in a few weeks was the obviously worse alternative.

;;;;
Worse for who ?

Anyone bothered to take a look at Iceland lately ?

Its not in the mainstream news, Even the BBC isn't covering them ...they themselves are too deeply mired in the Euro Crisis ...which is bigger than the American Financial mess.
But Icelands population literally attacked their parliment & demanded the Government allow the banks to fail.

So instead of the AVERAGE MAN -WOMAN on the Street going through the deprivation & economic hardship to appease the bankers like the Greeks & the Italians, the Spanish & Portugeuse & Ireland are dealing with, it came crashing down, property values crashed etc.

The crash & fallout went on for about 2 years & by 2010 economic contraction & unemployment ceased & then started to regrown ....so about 2 years .... compared to estimates of how Greece & Itally are looking at 5 to 10 years of their ruined economic engines !
& all of it because of unregulated banking & Industry & greedy politicians ....

So while I am unsure of whether Greece or any EU country could do the same, I believe if they 'leave' the European Union they then could default on the bankers.

[leanlifter1]

Wow now only around 17.8Trillion until people are out of the hole.

[Camarohusky]

At 12/12/12 02:27 PM, leanlifter1 wrote: Wow now only around 17.8Trillion until people are out of the hole.

Your numbers are meaningless. It's all just fiat crapsh anyway.

[leanlifter1]

At 12/12/12 03:59 PM, Camarohusky wrote:

At 12/12/12 02:27 PM, leanlifter1 wrote: Wow now only around 17.8Trillion until people are out of the hole.

Your numbers are meaningless. It's all just fiat crapsh anyway.

Not my numbers thee numbers and they represent mass failure and economic collapse. See it's inflation that is creating the illusion of sovereignty and prosperity.

http://www.usdebtclock.org/

[poxpower]

At 12/12/12 01:01 PM, morefngdbs wrote:

Anyone bothered to take a look at Iceland lately ?

Yeah, I happen to use Facebook too lol.
Every time someone posts a "LOOK WHAT ICELAND DID" picture / article, it's always shared from some crackpot conspiracy theory sites that talk about 9/11, monsanto, jfk, fluoride etc. etc.

I read about Iceland's crisis and resolution, honestly I am not enough of an expert to say if they did the right thing or if what they did could be done anywhere by anyone.
One positive outcome seems to be the citizen-drafted constitution. Hopefully it passes by next year. It would make Iceland a haven for internet pirates and whistle blowers as well, which benefits the whole world.

Economics are really too complicated for me to say that what they did was financially as brilliant as people keep claiming, but I know that socially they did something pretty awesome.

Though they should have jailed way more of their bankers and government officials. Oh well at least they jailed SOME.

[morefngdbs]

At 12/12/12 03:59 PM, Camarohusky wrote:

At 12/12/12 02:27 PM, leanlifter1 wrote: Wow now only around 17.8Trillion until people are out of the hole.

Your numbers are meaningless. It's all just fiat crapsh anyway.

;;;
Actually sir .... It Is Debt !
It has S.F. A. to do with currency aka paper cupons, it has to do with who is owed how much by others !

Never forget that even in a fucked up situation where a Private Company aka the Fed prints American Notes, they could technically print 17 trillion dollars & pay everyone off tomorrow.
(Well probably not tomorrow, it would take some time to print & ship such huge amounts of paper) But they could simply pay everyone off in fiat currency ...& if they did that, that medium of exchange wouldn't be worth the cost of the paper, once the worlds fiancial communities realised what was going on , a US Federal Reserve Note would be right on par with a Zimbawean note !

[theburningliberal]

At 12/12/12 05:37 PM, morefngdbs wrote: Never forget that even in a fucked up situation where a Private Company aka the Fed prints American Notes, they could technically print 17 trillion dollars & pay everyone off tomorrow.

Can we please stop posting this argument? The Fed (and Congress/the Treasury, which would have to direct the Fed to print the money) are all painfully aware of the effects of flooding the market with new US bills, as would be done if we actually implemented this solution. Since we are looking for a solution that won't titanic our economy, this option is off the table. So please, stop coming back to it.

[LemonCrush]

At 12/12/12 08:26 PM, theburningliberal wrote: Can we please stop posting this argument? The Fed (and Congress/the Treasury, which would have to direct the Fed to print the money) are all painfully aware of the effects of flooding the market with new US bills....

And yet they're doing it anyway.

Remember, as Obama and Romney both pointed out in the election, the rich will be fine no matter what happens :)