AIG spends $500,000 dollars after bailout at St. Regis Monarch Resort

[PuZo 10+ year member]

Actually yes. The book value per share exceeds the current share price. I was actually hoping for bankruptcy....the sooner the better for me.

Lastly, it was a loan. I guess people cannot get that through their thick *** skulls. If I loan you $100 or a $1,000 does it really matter what you do with the money as long as you pay me back?

If you file for bankruptcy, your not gonna get the money back. Its not a loan, its a bailout, they are 2 different words. And plus, have fun with your earnings, cause inflation, or even stagflation will help you survive maybe a week.

Bailouts only help the big guns in a company. They do absolutely nothing for the middle class, and the majority of the population like aunt thelma who is losing her home, meanwhile the CEO of AIG is sitting in his beach mansion smoking cigars and playing golf...The American dream, eh?

 

[Flipx99 5,000+ posts]

If you file for bankruptcy, your not gonna get the money back. Its not a loan, its a bailout, they are 2 different words. And plus, have fun with your earnings, cause inflation, or even stagflation will help you survive maybe a week.
Bailouts only help the big guns in a company. They do absolutely nothing for the middle class, and the majority of the population like aunt thelma who is losing her home, meanwhile the CEO of AIG is sitting in his beach mansion smoking cigars and playing golf...The American dream, eh?

1. Yes, you do. The common shareholders get what is left over after debts are serviced, lawyers are paid, etc. Usually the amount is very small.

2. Look at any literature, the 8-k filing by AIG, whatever you wish. The rescure was a loan with an equity stake. On the undrawn portion of the loan AIG pays ~ 8.5%, on the drawn down portion of the loan, the rate is closer to 11% (LIBOR + 8, which, depending on when they reset could be as high as 17%). The US Treasury has 79.9% issue of Preferred Shares.

3. I believe deflation is a great possibility now. It is hard for inflation to survive in an such an enviornment. Stagflation is highly doubtful. Hyperinflation, perhaps, but then it is my responsibility to remove the funds and buy something real or tangible, that I can actually use as a shield against hyperinflation.

4. Aunt Thelma had 1,000s of choices to make before losing her home. Instead of getting tossed up in the parking lot in college, she could have been studying for an exam. Instead of getting complacent after finding that first paying job she could have been getting an advanced degree, instead of having a family she could have been volunteering in the community and establishing a networking base. What still amazes me is that I see people say they cannot find work when there are plenty of places hiring. If Aunt Themla isn't willing to work at a gas station cleaning restrooms 3rd shift, then Aunt Thelma doesn't deserve a home. If Aunt Thelma isn't willing to work 2, 3 jobs...post willingness to do odd jobs in the neighborhood, etc.

5. That is the American dream. At least my dream. I do not wish to stay in the middle class, thus fight tooth and nail to advance from it. It may mean a great disconnect between me and my family, it may mean I lose some friends. I don't think Aunt Thelma was willing to make those sacrifices.

 

[Louisiana_CRX 5,000+ posts]

hell...I've always been poor so I'm use to it....fuk those big shots......

 

[Flipx99 5,000+ posts]

I am just so tired of hearing how people should be entitled to this or that. People are entitled to nothing. You can rest when you die.

 

[PuZo 10+ year member]

1. Yes, you do. The common shareholders get what is left over after debts are serviced, lawyers are paid, etc. Usually the amount is very small.
2. Look at any literature, the 8-k filing by AIG, whatever you wish. The rescure was a loan with an equity stake. On the undrawn portion of the loan AIG pays ~ 8.5%, on the drawn down portion of the loan, the rate is closer to 11% (LIBOR + 8, which, depending on when they reset could be as high as 17%). The US Treasury has 79.9% issue of Preferred Shares.

3. I believe deflation is a great possibility now. It is hard for inflation to survive in an such an enviornment. Stagflation is highly doubtful. Hyperinflation, perhaps, but then it is my responsibility to remove the funds and buy something real or tangible, that I can actually use as a shield against hyperinflation.

4. Aunt Thelma had 1,000s of choices to make before losing her home. Instead of getting tossed up in the parking lot in college, she could have been studying for an exam. Instead of getting complacent after finding that first paying job she could have been getting an advanced degree, instead of having a family she could have been volunteering in the community and establishing a networking base. What still amazes me is that I see people say they cannot find work when there are plenty of places hiring. If Aunt Themla isn't willing to work at a gas station cleaning restrooms 3rd shift, then Aunt Thelma doesn't deserve a home. If Aunt Thelma isn't willing to work 2, 3 jobs...post willingness to do odd jobs in the neighborhood, etc.

5. That is the American dream. At least my dream. I do not wish to stay in the middle class, thus fight tooth and nail to advance from it. It may mean a great disconnect between me and my family, it may mean I lose some friends. I don't think Aunt Thelma was willing to make those sacrifices.

Wish it was that easy.

 

[Flipx99 5,000+ posts]

Wish it was that easy.

It's not. It's not at all. I didn't know life was supposed to be.

 

[PuZo 10+ year member]

It's not. It's not at all. I didn't know life was supposed to be.

So then why are you acting as if it is. As if this process is a good thing. As if the bailout really helped your/our economy at all.

 

[Flipx99 5,000+ posts]

So then why are you acting as if it is. As if this process is a good thing. As if the bailout really helped your/our economy at all.

This process is a good thing because I was able to profit from it. Does it help the economy, no. But it does make me slightly more wealthier.

That is my big "lessons learned" for 2008. If something is bound to happen, and you don't think you can stop it, then you profit from it. Like the old adage, if you can't beat em, join em. Do I think the $700B bailout (I call it a bailout because it still isn't quite clear what the Treasury is going to do) was the appropriate solution, no. Do I think I can find a way to make some money off the deal, yes.

Which, to me, seems like the better solution opposed to complaining about something I cannot stop.

 

[squeak9798 5,000+ posts]

Its not a loan, its a bailout, they are 2 different words.

Yes, they are two different words. And for some reason, people are using them interchangeably and their meanings are getting lost in the translation.

AIG received a loan from the government to "bail them out" of a bad situation that would have resulted in bankruptcy.

It wasn't free money. AIG is obligated to repay the funds. And the taxpayer will probably make a profit from the whole situation, as well as benefiting from avoiding the disastrous effects that would have followed had AIG filed bankruptcy.

 

[Flipx99 5,000+ posts]

Yes, they are two different words. And for some reason, people are using them interchangeably and their meanings are getting lost in the translation.
AIG received a loan from the government to "bail them out" of a bad situation that would have resulted in bankruptcy.

It wasn't free money. AIG is obligated to repay the funds. And the taxpayer will probably make a profit from the whole situation, as well as benefiting from avoiding the disastrous effects that would have followed had AIG filed bankruptcy.

I said this and said this. I would just link the 8-k, but it would be a waste of time looking on EDGAR to find it.

I am sure you are shaking your head everyday.

 

[squeak9798 5,000+ posts]

I am sure you are shaking your head everyday.

I'm officially a bobblehead.

 

[WhoSayWho? 5,000+ posts]

If you file for bankruptcy, your not gonna get the money back. Its not a loan, its a bailout, they are 2 different words. And plus, have fun with your earnings, cause inflation, or even stagflation will help you survive maybe a week.
Bailouts only help the big guns in a company. They do absolutely nothing for the middle class, and the majority of the population like aunt thelma who is losing her home, meanwhile the CEO of AIG is sitting in his beach mansion smoking cigars and playing golf...The American dream, eh?

You are in way over your head here. Pick somoene else to debate on this issue. I suggest you wait for KingRanch to sign on.

 

[snb778 5,000+ posts]

Another Canadian hating on us Americans that are ballin'

you do know that the Canadian dollar is worth more than ours right.... they come here to ball it now days

 

[Haunz 10+ year member]

This process is a good thing because I was able to profit from it. Does it help the economy, no. But it does make me slightly more wealthier.
That is my big "lessons learned" for 2008. If something is bound to happen, and you don't think you can stop it, then you profit from it. Like the old adage, if you can't beat em, join em. Do I think the $700B bailout (I call it a bailout because it still isn't quite clear what the Treasury is going to do) was the appropriate solution, no. Do I think I can find a way to make some money off the deal, yes.

Which, to me, seems like the better solution opposed to complaining about something I cannot stop.

IMO you are comming off as a serious douche bag... and I wonder what someone like you would do if some shit really hit the fan ?

The bottom line in my mind as far as this goes is that many of these companies would be going under if it was not for these bailouts.. and now that they have this tax payer cushion to lie on the fat cats can continue with their companies lifestyle.. lavish expenditures and bad buisiness included..

I won't pretend to understand all of the dynamics of the situation.. but it does seem to me that the american taxpayers stand to loose alot more then they may gain in this whole fiasco.. and I personally believe this whole bailout is one big mistake orchestrated by those who intend to save their own ***** and line their own pockets without regard for the good of the country as a whole...

Since you seem to care about your pocket book alone.. I say **** you.. and I hope you choke on some caviar..

 

[brtnboarder3241 5,000+ posts]

pisses me off.. **** them ******* ****s