by frog
Here’s an AIG commercial that, with hindsight, just drips with delicious irony. For the record: AIG posted one of biggest losses ever in corporate history last year and have since received $US182 billion in bail-out money from the US taxpayer.
Published in Economy, Work, & Welfare | THE GAME | THE ISSUES by frog on Thu, July 16th, 2009
on the trolls and those who are unable to keep on topic
...
Note that the government (run by GS) let Bear Stearns collapse.
Note that they let Lehman collapse as well.
Then they bailed out AIG
Goldman could not lose money on AIG (according to Goldman) but Government-Sachs structured the deal so they couldn’t anyway.
Then Goldman got $10 billion in bailout money.
BAC bought MER under duress from Government-Sachs at about the same time.
The taxpayer had to eat massive subprime losses while GS structured deals that ensured that Goldman would not eat massive subprime losses.
GS stock price was collapsing like every other financial stock over the last 10 years until the government intervention.
This isn’t about AIG. It is about Goldman-Sacks-The-Planet.
BJ
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bjchip – Goldman have paid back their $10 billion.
They must be the good guys after all.
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http://www.theatlantic.com/doc/200905/imf-advice
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History repeats. As if NZ governments are any different.
National Party Government bail out New Zealand’s biggest bank.
Just three days after taking office, Prime Minister Jim Bolger announced plans for a $380 million rescue of the Bank of New Zealand. He also said the budget would have to be rewritten and the Government would have to borrow an extra $740 million.
Mr. Bolger has accused the Labor Government, swept from power in the general election on Oct. 27, of hiding the depth of New Zealand’s economic problems.
The cash injection for the state-controlled bank was the second in little more than a year. The bank has been in trouble since a drive to become a global bank failed after the worldwide stock market crash of 1987.’
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Of course AIG should never have received a cent in taxpayer money. The problem that has been created by all these bailouts is a moral hazard – next time, private companies will be more likely to take these risks knowing that there is plenty of upside and that if they are large enough, the government will bail them out. Of course, this moral hazard has been around since the 1980s when the US Government bailed out the various Savings and Loans entities.
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Have we learned nothing from the financial collapse? The spend now and pay later approach is still in effect. The economy is still feeling the aftershocks from the bailout. While we are still on shaky ground, the executives at these bailed out companies continue to recieve huge bonuses and excessive compensation. Where is the bailout for us? Where is our stimilus package and rescue. Home prices are still falling and the future uncertainty of the markets are bringing everything else along with it.
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