AIG bailout, interesting alternative approach

[kentb 10+ year member]

if you do that. there will be inflation.

value of dollar will go down and in turn be worse

 

[wErd 5,000+ posts]

I dont even know what AIG is...

???

 

[squeak9798 5,000+ posts]

So, based on your info....US does own 79.9% of the assets? Folks in the market are hoping that if/when loan is repaid, the govt would give up it's equity stake.

My info is the same as what's in the public //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif Top-down communication is pretty vague about details...but from my understanding the Feds do have a 79.9% equity stake in AIG. As part of the deal they also required our then-CEO Bob Willumstud to resign (which is odd, because he just took the reigns in June after Sullivan was ousted) and put in place "their" CEO. Over the next ~ 2 years AIG will be selling off assets/etc to repay the loan.....which I'll be interested to see if that is going to include my organization or not.

I would think the US would have no choice but to give up their stake once the loan is repaid, unless we truly are heading towards a socialist economy.

 

[Flipx99 5,000+ posts]

My info is the same as what's in the public //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif Top-down communication is pretty vague about details...but from my understanding the Feds do have a 79.9% equity stake in AIG. As part of the deal they also required our then-CEO Bob Willumstud to resign (which is odd, because he just took the reigns in June after Sullivan was ousted) and put in place "their" CEO. Over the next ~ 2 years AIG will be selling off assets/etc to repay the loan.....which I'll be interested to see if that is going to include my organization or not.
I would think the US would have no choice but to give up their stake once the loan is repaid, unless we truly are heading towards a socialist economy.

I guess my PM is worthless...the way I interpreted it is that the 79.9% is collateral....which is the only way it wakes sense...the dillution is temporary.

However, I have a "conspiracy theory" in me that says they are going to use AIG as a universal insurer for Obama's healthcare plan.

 

[squeak9798 5,000+ posts]

Sorry, I didn't see the PM prior to responding.

Reuters reports that AIG will issue the government a 79.9% stake via convertible preferred stock.

I did hear a pretty funny satirical commentary on NPR the other day about using the governments new control of one of the worlds largest insurers and the nations largest mortgage lenders to build the US into a fantastic socialist republic. Affordable healthcare and homeownership for all //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

 

[quest51210 10+ year member]

then we can all afford $50/gallon gas

 

[DDeitz 10+ year member]

I say LET THE BANKS SUFFER!!!
If it wasn't for there dumb ***** giving money to people that they KNEW couldn't pay it back, then we would not have to worry about a bailout plan. Then let the rich CEO's BURN. All the people with foreclosure's file bancruptcy, and liquidate all there items.

There. Problem solved.

you think the banks are losing money on this ??? hahahah you realize the largest loan in the history of the world is being given out at 8.5 percent is it...thats a heafty sum of change a BANK just made....

 

[95ZJ 10+ year member]

I'd spend it all on hookers and meth. //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif

 

[lilmaniac2 5,000+ posts]

This all goes on the basis that people would pay there bills/other obligations because they have money, but in all reality most of the scum knows that America won't ditch them so they will spend the money on hookers

 

[hoss 5,000+ posts]

im not reading this whole thread...

but has anyone else noticed that $85 billion divided by 200 million people only gives us $425 a piece, not $425,000.

math fail.

 

[Chevillac 5,000+ posts]

fail

 

[Rawr-DQ 10+ year member]

Fail thread, 700 billion / 200 million is 3500 hundred dollars you fking retards.

Edit: glad other people did the math too, and I'm not calling everyone a retard pretty much the op.

 

[Rawr-DQ 10+ year member]

im not reading this whole thread...
but has anyone else noticed that $85 billion divided by 200 million people only gives us $425 a piece, not $425,000.

math fail.

Total math fail