Fed nears a deal to take over ailing AIG

Wake up America! You, the hard working Joe citizen are footing the bill for Corporations who screwed you over in the first place. Your worst nightmare has just come true America. We are in DEBT to the tune of $400 million dollars and just gave a mismanaged company $85 billion of your money. When you can't pay your gas, can't pay your groceries, can't pay your mortgage, just think to yourself that you are not important to Washington. You just bankrolled corporations that put you there. Good job to all politicians in Washington for allowing this to happen. Don't forget, things are going to get worse. I'm going to get drunk, dig a hole and stick my head in it...tell me when China takes us over.

No.

Absolutely. AIG has an internation footprint and is a victim of the young, irresponsible MBA bankers who intentionally compromised their own standards for personal profit. They built a house of cards on which the economy relied and are solely to fault for this monumental mess. They enjoyed years of big bonuses while defrauding the public and the nation. This is a systemic problem of a generation of instant gratification wiz kids and a financial system that lacked the integrity and discipline to know that someday this would come home to roost. Now, the responsible, small investors are being punished for their frivolity. 401's and IRA's are deteriorating at a time when older workers can least afford to pay for stupidity and greed of a younger generation. Shame on the American banking industry.

Absolutely not the right thing to do. What happened to their worries over "moral hazard"? The wringing of hands over how much work this would cause in unraveling what's connected to what else... let the market correct itself. AIG needs to have gone bankrupt and let others pick up the pieces left by the vacuum. This ends nothing, AIG will be in the same position by end of 4th quarter and the taxpayer will hold the bill for this debt and God knows how much more.

Not one single story or news report that I have seen mentions even in passing the notion of seeking out and punishing the actual people who worked these shady collateralized debt packages - not one - I have seen no talk of firing or holding anyone who aggressively soild this garbage to people out of sheer avarice and disregard for duty resposible for any of this. How does that work? No names, no firings, no penalties, no accountability.

None.

Look, read the WSJ article to get a better understanding of this. The collapse of AIG would have rippled through the economy, not because of the insurance sector (which is segregated and maintains adequate assets to pay all claims plus a $26 billion surplus beyond the forecast claim amounts), but because of their Financial Services Division. AIG has 1 trillion in assets, but they aren't liquid. To allow a solvent company of this size to be forced into a fire sale of assets and to erode the brand name and the franchise would be governmental malpractice of the highest order. The government is loaning AIG $80 billion and is obtaining the right to buy 80 % of the company at a preagreed price if AIG defaults on the loan. Supposedly, the warrants are structured to encourage the speedy shedding of assets, something that AIG wants to do, but without the sword of bankruptcy hanging over their head. Provided AIG is not misrepresenting their asset structure or the potential for further deterioration, this should work out fine for the taxpayer and for the shareholders of AIG. The policyholders will be fine under any scenario. In a perfect world, AIG sells $80 - $100 billion of assets, pays the loan back in short order and the warrants expire unexercised. Then, AIG can manage their company without the so-called free market forcing a spiral that results in the equivalent of a run on the bank - a collateral call.

Noooooooooooooo!!!!

This is complete and utter bull@!$%#. Bush is doing everything he can to cover his cronies in the last 4 months of his administration.

Thank you for the factual information. Everyone is understandably upset about all our country's problems, but it would be helpful if we understood some of the concepts involved instead of just going with our gut reactions to headlines.

Earlier today I was proud of the government for staying out of this mess. Now, I learn that in actuality they've done the very thing I was glad they hadn't! I'm disappointed, angry, and tired of footing the bill, as a taxpayer, for the reckless. How many MORE companies will our government "save"? These banks and investment corporations, etc (anyone involved in any way, shape or form in the sub-prime mess) needed to learn a lesson: engage in reckless business practices (usually in the name of a quick buck) and do it at your own risk, with no government safety net. This situation is like a drug abusing teen with a couple of enablers for parents. The parents make excuses, scrape the kid up off the ground, promise he'll learn his lesson, and then the whole mess repeats again. If the government keeps bailing these idiots out, nothing will stop this cycle from happening again somewhere down the road. There will be no reason for corporations to think twice- why worry, the government will bail us out. This is not the way America works. So the collapse of AIG could have made the economy even worse, and have affected lots of other areas of the financial world. So what. We would eventually have recovered, and been better off for it, with less national debt, a more secure future, and (hopefully) a smarter more sound financial sector. Instead, in what has become trademarked behavior by our government, another band-aid was applied to an oozing wound, with the decision-makers hoping that it will hold until the whole mess becomes someone else's problem. Shame on the financial sector, shame on our government, and shame on anyone who is profiting from this mess.

you said it chicago....

Do we have a choice? "Tax and spend Democrats", my @ss. The Repubs deregulated the system and we have this to thank for it.

"Tax and piss our money away, and borrow from China on credit, Republicans"

These traitors are selling off our nation for their greedy cronies, AT OUR EXPENSE!!

If you vote for McCain\Palin, you deserve to lose your job, lose your home, and watch your family suffer without healthcare.

Hell No it's not a good for anyone! the "Feds" are playing with America's money. Bush makes a speech in Texas asking Americans to dig deep and donate to help the people of Texas. Then on the other hand he O.K.'s a plan to fork out $85 Billion to a corrupt entity to keep the economy afloat. Where the hell is the money that was given to them by customers? Fancy homes in Europe? Private islands in the Pacific? Good grief America.... why do you allow this to happen time and again? the filthy rich rip you off the first time, waste your money and then the Feds take your tax money to keep the sinking ship above water. It's all beyond comprehension. Will it not end? The feds can pick and choose who receives salvation and a free meal ticket? I don't see anyone giving me a break, paying my way or making me have a easy ride. I'm ashamed to be part of this even being under protest. We are at the mercy of the real people who own and run this country like some kids board game. Joe America needs to say enough is enough and stop the madness. There is strength in numbers!

This is absolutely ridiculous! Corporate welfare at its worst.

I've read the fine print and inquired financial investers and they (our present political leaders and these companies) know exactly what they are doing. They have known about their certain demise for awhile now and opted not to do anything until the debt became so big they backed the Feds (buddies) into a corner.
My analogy is this ....
A very dear loved one was hit by a car, died and left his 4 kids penniless, because he was 40 years old and didn't have a Living Will; this was back in the 70's.

The thug that hit him (which we all believed was intentional) moved all his assets and liquidable accounts into his mothers name, so the courts would not force him to liquidate.
He was quite wealthy and knew people (unethical business personnel) that helped him move his funds. The beneficiaries, grieving children with no mother, were all under the age of 17 and after 4 yrs of probate court hearings received a mere $1,200 each.

I truly believe Fannie/Freddie/AIG/ WorldCom/Enron and others sure to follow, commit the same unethical acts; behind the scenes and stashing their monies in other accounts, while everyone even our country suffers. I would not be one bit surprised!!!!!

NO MORE BIG BUSINESS OR LOBBYISTS WORKING FOR BIG BIZ!!! We, the people, must find a way to make them more accountable and more transparent. I just wished we had started earlier...it's time to own up America...find the fight in you.
MOVE...DO SOMETHING...WRITE YOUR CONGRESSMAN...WRITE ARTICLES AND POST THEM...SHARE YOUR VOICE AS FAR AS YOUR VOICE WILL TAKE YOU!!!!!

How can we trust a company like AIG with $85 Billion Dollars of the Tax Payers dollars when they cannot be trusted with their own money and the monies of their investors?

The collapse of AIG would have an adverse effect on the Economy, but it would be limited. Other Insurance Companies and Financial Institutions are still operating and not under the threat of Bankruptcy! They would pick up the business and minimize the fall-out!! And as their Business grows they would hire the employees from AIG!!!

By the way who loaned the Federal Government the money to loan AIG? Another Foreign Country bail-out? Do I have to look forward to an International Social (in)Security Card?

One response cited that AIG has time to re-structure and right the ship and the Federal Government having the "possibility" of acquiring 80% of AIG's assets. What if their are no assets left? That equals 100% of nothing!

Our own Government wont release funds to assist the American Taxpayer with their Housing woes or basic cost of living but they have the audacity to pull something like this?!? Why am I not surprised!!

No, and hell no. Waste of tax payer money. Let those a-holes go under. AIG management is a bunch of welfare whores. Proud of yourselves, hey. Choke on it.

It is time to eliminate the Fed.

The FED , by law, is the one responsible for making sure entities are not delving out risky loans. I don't think they did a good job in this area. Let's CHANGE this problem NOW. And remember the "Savings and Loan" scandal of the 80's? Or how about the risky Wall Street loans called in just before the GREAT DEPRESSION???? Sound familiar?

ha! they can't even run the house and senate much less a corporation of which they are now 80% proud owners ... with MY TAX MONEY. A failing corp. at that.
Let them all hang themselves, its been a long time coming. Stupid execs without the brain power of a squirrel. All those loans and things will still have to be paid back by the legitimate owners - no sweat there. The ones who were only renting will leave the corp. holding the empty bag.

WHAT BALLS!!!
Ten years ago, I switched from Republican to an Independent. Would you believe the letter I got
today! "Personal" from John McCain, saying "My friend, we need to raise 10 billion dollars, and
we know we can count on you for a donation of -- get this! -- a thousand, 500, or 250 dollars.

I quit these bastards ten years ago. They dug out the old registrations and have the "nads" to ask ME for money,-- they are the ones that just cost me 23 thousand dollars in common stock, I
lost when they took over Fan/Fred. They cancelled ALL the common stock held by individual
investors and shored up the stock of the corporations so the Feds could have 80% of the
groups stocks. The 200 billion dollars used is NOT Taxpayer money, it is borrowed from CHINA ----so China now will OWN 80% of all the houses in the United States with mortgages!! I guess they just add this cost to the loan from China.

BUSH, CHENEY, GRAMM AND NOW McCAIN HAVE BROUGHT THE COUNTRY TO IT'S KNEES!!
We' re supposed to be thankful for this???

The PALIN PARTY can go to Hell!

The Fed needs to stick to its basic fundamental charter and leave ALL of Wall Street to survive or fail. It is not the responsibility of taxpayers to assume the liabilities of private industries bad judgement or miscalculation. Whatever happen to Wall Street's sense of assuming responsibility (total) for its successes and failures and not ask taxpayers to assume liabilities associated with Wall Streets lack of good judgement. I guess we all understand the 'true' definition of 'free enterprize' system. If you fail don't worry, the average taxpayers will guarantee your loan and underwrite your failures. Business will never have to assume responsibility for its failures. Just forward the excess liabilities to the taxpayers. I am in disbelief when Wall Street decries 'any oversight' and then abuses its employees, the public and regulators with 'lack of total and clear transparency' and robs the train and gets off and then leaves the run away train to the public to prevent the oncoming train wreck. I wonder how all of these so called 'capitalists' would say to their Grandmothers when explaining their fundamental breaking of the basic rules of right, wrong and fairness. Would they be 'totally' honest with their Grandmother's or would their Grandmother wash their mouths out with soap because they did not do the 'right and ethically correct thing'. Perhaps I am naive, but we are leaving a very sad example for our children and not to respect towards our Grandparents memory. Most children/adults misrepresent the truth to their Grandparents. We have gotten so caught up in creating imaginery wealth with smoking mirrors that we have truly lost our morale compass. So, when you see your children follow your example don't be surprised.............just look in the mirror and tell your Grandparents how 'proud you are' on passing along their fine qualities. Oh, by the way, I have yet to see a hurst pulling a U Haul so you can't take it with you................but your children are truly your only legacy.........I hope we are all proud. We are setting a wonderful example for our children, our nation and the world.....and we are wondering why we aren't respected. Hey, if we can't make the mental jump on that question we are seriously disconnected. Trust has to be earned by children to parent and from parent to the child and among nations. We aren't setting any example to be respected anywhere on any planet within any solar system. We are caught up in degrees of correct or rightness as if not getting 'caught' with our hand in the cookie jar is somehow to be respected as an achievement as if 'we beat the system'.............hey, the system is us and we are just injuring a family member and what accomplishment is that. Perhaps its an achieve in kindagarden, but not as a grownup. Yes, I am frustrated, but more disappointed. You aren't ever a little bite pregnant you either are or you aren't. There are not degrees of pregnancy and there are not degrees of right and wrong. Past President Clinton may not understand the definition of what 'it is', but everyone else on the planet does. Anyway, trust is earned day after day, hour after hour, minute after minute. If you are elected or appointed to a position of public trust then I would hope that you would truly understand the responsibilities they go along with that charge. To be fair and balanced to all and TOTALLY OPEN AND TRANSPARENT and if you can't sell the idea to your Grandmother then if is pro bably a very bad idea................and trust me..............she will tell you the truth when no one else will..............and why, but she honestly loves you and cares. So, let's care about this country and allow the capitalistic system to succeed or fail based on the risk factor. The higher the risk the greater the reward or loss...............but it is not the business of the average taxpayer to underwrite success............that is a violation of America's Charter. What businesses were bailed out, a bridge to far provided, or some other government guarantee provided? What has changed? I would suggest that you have a few 'special' interest personalities or interest groups that are being protected and who will benefit from the public bailing them out. They will become wealthier at the expense of others underwriting their bad judgement. No one person or company or country should be protected from failure. You can't protect people or companies or countries from themselves. It is time for some 'hard' love so let's be honest with ourselves and everyone else and set an example that our children and Grandparents can be proud of. Let's be totally transparent in all aspects of business and government. Let's call it straight up and straight down. Americans can handle the truth and the truth has been in very short supply lately. And if we don't ask the question we will never know the answer. Hold all public officials accountable..........elected or appointed and REQUIRE TOTAL TRANSPARENCY of all of Wall Streets transactions. No one is interested in investing in America because they do not know what the truth.........total truth of our balance sheets are. It seems we have a second set of books..........off balance sheet liabilities. You know the old saying..........figures don't lie, but liars can figure. Let's get away from degrees of correctness and pretending that we are only a 'little bit' pregnant. AIG bailout was a terrible mistake and should have been left to fail. If Warren Buffett was interested and he understands that industry totally and other banking institutions were not interested then why would the American taxpayer be interested or have I just missed something. Get a grip and take a long step back. Thank you for listening. By the way, my very Best to your Grandmother and her memory.

I'm no expert on global finance but something tells me if AIG goes bankrupt - a company that has 1.3 trillion assets in 130 countries - its ramifications would be too huge for the world to handle.

The bright side of this is, contrary to many people's belief, that this country still rules. We sneeze, the world gets pneumonia.

This forum demonstrates why the average American should not be allowed to vote. 95% of the responses say let AIG fail. How utterly stupid can you people be. Lets crash the entire US financial services industry because of a couple of greedy CEOs. That's fine go after the CEO's but really do you want to put the country into recession because you are mad at a handful of people. It is disgusting and so typical to blame large companies when there are millions of guilty parties. It is true that the investment banks were allowed to leverage their money to unsustainable levels and that regulation needs to be in place to correct it from occuring again. But the loss of hundreds of billions in stock value hit the investors in these companies, pension funds, iras, etc.

Did you forget the millions who bought houses they couldn't afford. Did you forget that congress specifically mandated looser guidelines so more minorities could get those unsustainable high interest rate subprime mortgages? It's pretty simple, Fannie, Freddie, AIG, and Bear Stearns would have had fatal consequences in the US economy and worldwide economy. Lehman will be tramatic but a demonstration that unless you are big enough to wreak havoc on the economy you are not going to be helped out. By the way, the $85 billion is a loan not a gift. It is going to be another year before we find out what the cost is, if anything, of the actions with the aforementioned companies. The shareholders of all of those companies have lost almost their entire investments.

The steps that are being taken will hopefully stem the downward spiral we are in.

Rob Neil,

It is NOT the right thing to do! Government should Not Bail Out Private Companies. We have Markets to take care of these Issues. Government is NOT to burden the Tax payers with Bad Management of Companies who practice voodoo economics. Time will tell if his band-aid is holding.

Bad move Bernanke, just a bad move! The loser in this game is the tax payer.

Not No, but H##l No. Why have there been no indictments on these abortions. CEO' running companies into the ground, my tax dollars bailing them out. Then Obscene golden parachutes to the miserable bottom dwelling criminals in charge. This is one life long registered republican who will never vote republican again.

Hello all. I have read almost all of the comments posted and I'm sad about how everyone is reacting. Lets fight amongst ourselves because we are a republican or a democrat. Lets point the fingers at the current administration. Lets get pissed off at the corporate heads who went after the $$. What's really sad is that everyone thinks they have the answer to this problem when it's not a single instance requiring a single solution. Politics won't solve this no matter who you vote for. You all want to point the finger at someone else or say that your party nominee will fix it. Where did this mentality come from?? Does anyone dare say that WE THE PEOPLE have done this to ourselves? Our own greed, pride and sloth has done this. People talk of trickle down economics and policies. Well, what is happening right now is exactly the opposite. WE CREATED THIS MESS. NOT THE POLITICIANS, NOT THE CEO'S. We wanted that house, that car, that boat that we had to borrow money to buy, knowing it was a risky loan but were sure we could pay it off before the rate adjusted. And we could have paid it off, but guess what, - we got comfortable with our new found lifestyle and posessions - forgetting about that never sleeping interest rate. WE DID THIS. These companies only did what WE wanted them to do. Be aggressive, go after it, take a risk, loosen up guidelines and restrictions to help out the have nots. Now, when the mess we have created is being put back onto U.S. you are complaining??! You call for accountability - you call for responsibility - you call for change. Well my friends, WE ARE CALLING OURSELVES TO THE JUDGMENT BAR for WE made this mess. This whole 'entitlement' mentality doesn't work. This too proud to work for pennies doesn't work. The attitude of blaming someone or something else for our troubles doesn't work. WE are only accountable to ourselves and God and We have dug this whole.

I can say this because I have an MBA, I'm a licensed securities broker, real estate agent and loan officer. I also know what it's like to start and run a business. As a financial services representitive, I have seen more laziness and pride in the same people who have created their own problems and now want someone to help bail them out or make it easier for them to dig their way out. Life doesn't work that way my friends. This is a mess WE (I am an American too - but given my background, don't have the same worries/concerns and political views as most of you commenting) have created. I have been smart with my investing, buying and counsel I have given to clients. I can't force them to take my advice nor will I protect them from the consequences of poor decisions. So my friends, there are those like me who don't want to 'BAIL OUT' messes we didn't help create - just as you feel is happening here. Some of you are complaining that the FED isn't helping you out. Well, by loaning this money, by taking Fannie and Freddie under it's supervision, they are trying to do just that - BAIL US OUT. If you think you home has lost value now, just think if these institutions were allowed to go under. Your home would be worth NOTHING, yet you would still be liable for the mortgage - TO A FOREIGN BANK who bought it up and I'm pretty sure, China and Russia and Korea would love to own your home. Talk about invasion and taking over the US. They could do it without EVER firing a shot. We Americans love out freedoms and our guns so we would shoot at them, but wouldn't have any means to build, or buy more weapons. You think this is extreem talk?? Then WE are more nieve than I thought.

The next time you want to point fingers at other people and institutions, first think about what it takes to get to this point in time and ask yourself, did you do anything to promote or prevent this? 99% of us would say no. 99% of us are wrong. If you can't be responsible with your debts and obligations, if you can't be an American and not depend on someone else for your job, income, food, fuel, - if you can't pick yourself up, brush off the dirt and get to work - putting your own house in order, then thank people who are helping do it for you - people like me, who pay a lot in taxes, who employ people, who create jobs, and who try to teach good financial and ethical principals. With this ME mentality I'm reading - if you want me to do the same then I'll say - when are you going to listen to people like me and stob shooting yourself in the foot???!!! Stop taking my money, my sweat, my time away from family and my guilty pleasures to fix everyone's mistakes!!! I am and American. And as an American, I will stand, fight, and fall if need be to make America great. We are only as strong as the weakest among us.

Stop fighting and get to work. AND might I suggest studying the rise and fall of the Roman empire. History repeats itself.

What happens if AIG still tanks after receiving the $85B? Do we give them an additional $85B or more and at what point does the bail out stop? This is only the beginning of large institutional failures as there will be more coming anyway.

This loan to AIG is just as risky as the high risk mortgage securities AIG is holding, it's the equivalent of giving a huge loan to a high risk home buyer that is in deep financial trouble.
What sense does that make? It seems that these bailouts are just perpetuating what actually started this mortgage crisis which is more bad loans, this time by government and with our tax dollars.

There no is doubt there will be repercussions if AIG was allowed to fail but who stands to gain the most from this bailout is the real question and concern. It's difficult to believe that the average person will benefit the most from this high risk "loan."

Well the taxpayer gets hit again and the rich keep getting richer. Where is this money comming from China or Japan? The US doesn't have any. The most sesible thing I've seen so far is the Chairman of Mac & Mae not getting their seperation bonus, course that's probably in their contract so in the end they will probably get it anyway.

Wake up people the Federal Reserve Bank is a private bank, not the goverment. You need to know about your money check it out. Half of you probably still think your money is backed by gold.

The article states "the U.S. government agreed Tuesday to provide an $85 billion emergency loan to rescue the huge insurer AIG" Since when is the FEd the US government - it is a private banking institution - a mafia like organization that has a printing press and the right to print up money based on nothing, and lend it out for interest. Since all the loans cant be paid back, they print more and more money deflating the dollar, and worsening everyones' lives.

Wake up people the Federal Reserve Bank is a private bank, not the government. You need to know about your money check it out. Half of you probably still think your money is backed by gold

.

You mean our dollars are not fully backed by gold reserves! Wow, that a was a very enlightening remark.

You mean the Feds are printing money that has no gold and silver backing and lending it to other banks and institutions, double wow! I wonder if that's going to affect the value of the dollar as more are printed causing an inflationary effect decreasing our purchasing power.

Do you think that have the same effect as using inflated taxpayer dollars to pay for bailouts? Whats the difference, both taxpayer dollars and Federal Reserve Notes are printed on the same press. it just ends up in different places for different reasons. It's still notes of "faith and credit" unfortunately with no intrinsic backing.

I am not knowledgeable as to the necessity to bail out AIG, but I ask if they are worthy of help, why are the millions of homeowners who were victimized by predatory lenders not worthy of help? This program to help borrowers, that is moving into place now, will only help a few, and it is taking months. Why can't it move with the speed of the Bear Stearns and AIG rescue? Check John McCain's brain trust, and you will find lobbyists...the people who brought us this mess!! Is not the republican platform "Every tub sits on its own bottom"? It was at one time, before they switched to "corporate welfare"!

It appears the only one who has any intelligence in these posted comments is Greg_385716. Wake up America and quit pointing the finger at the current or past presidents or the various party affiliations. It is all politicians who created our problems whether Republican, Democrat or Independent from the local level all the way up to our congress. They spew out the same crap every election year and we fall for it and we vote them in. The solution for Americas problems is placing term limits on all politicians to keep the bums out from feathering their beds and letting their cronies too deep into the taxpayers pockets. Forget about the bailout of AIG which is an American Corporation. I don't see anyone complaining to congress about the annually wasted millions of our tax dollars that we give out to foreign nations and their politicians who piss it away only to be criticized by their people and our way of life. Get a brain America and quit flapping your lips via e-mail at what president and/or political party is at fault. They all are.

I have my life insurance through this company. I cannot replace this insurance at the same price, i would cost me double the price. Stop to think how many people would be in the same position. this is a nessasary bail out like it or not

Well said Greg - and your absolutely correct in all your opinions on the matter.. i think that what has people boiling over is that the tops exec's of these companies manage to "award" themselves huge bonuses and severance packages that guarentee that they cna live like visiting royalty for the rest of thier natural lives.. The other part is that these top eexec's have committed crimes in thier positions (see ENRON) yet if anything ever happens to them in the criminal justice system it is less then a slap on the wrist..

Most people see a problem with a system where a kid with a knife robs a Seven Eleven of $200.00 and he gets senrenced to five years in a medium custody prison.. A business exec robs ratepayers / consumers of millions using a pen and a computer and might get sentenced to a few months at Eglin AFB federal prison - literally a country club.. Of course the exec gets to keep the ill gained millions that he or the board awarded him..

Welcome to UCSA AKA United Communist States of America. in a Communist government the Country owns big companies ,and anything over 50% is OWN .So do all AIG employees become Government employees now? Who gets the profits? Can I go to share holders meetings since we all are the government? Is the board and CEO go to voted in by the people that own that company now ?When can the government start buying companies like GE,State Farm , TVA , if the government go to buy companies why not the ones making big profits instead of ones going broke ? is it not best for the people to have profitable? WHO anybody buy stock in a company that is going broke ????WE THE PEOPLE just did !!!!

I agree partly with with Rich's breakdown; this should not be a big deal IF they can liquidate and repay the government. AIG has been a mess since CEO Greensberg got busted for embezzling...I also agree it seems to be no end in sight, I'm reading that the American Auto industry wants a buy out too! What's next - Walmart & Target have poor Christmas sales so we float them $25-50 billion too? Where's my bail out at the gas pumps?

The management of these companies gets turned out by the government, but they get to take their golden parachutes on the way out. I don't believe the government should regulate these companies any closer, it is up to the boards not to reward these knuckleheads when they drive their companies into the ground, but they aren't going to do that either. I'm not sure what the answer is, but I burns my grits just thinking about it. I have already written Speaker Pelosi and both of my state representatives to tell them what I think about this, I encourage everyone else to do the same. I will have a stroke if we "bail out" Detroit automakers!!!!!!

Naturally the current administration cannot allow this kind of failure on it's watch, most especially during the run up to the Presidential election. As many of the responders have noted, the average tax payer had nothing what so ever to do with the poor business decisions, facilitated primarily by corporate greed and allowed to occur under the wayward eye of the current administration, which have led Fannie, Freddie and now AIG into such poor financial conditions.

Yet, we (you, me, your parents, siblings, cousins, neighbors) the everyday citizen who is already struggling under the increases in fuel, food, housing and medical care...will now be charged with retiring the debt of these firms, through the actions of the current administration to shore up these firms, lest we have some kind of "catostrophic melt down".

I say let them fail. I say recover the enourmous bonuses paid to CFO's, CEO's and the like, who falied in their duty to run a financially sound firm. The private sector should remain just that. This is just another disgusting piece of the puzzle created during the last 8 years.

Two questions...who is going to jail from Freddie, Fannie & AIG? Heads need to roll! And, will we elect another know-nothing Dictator, who spends billions of our dollars a month to fight a war we cannot win, to bury our country for the next 4 years?

I agree, the Feds should stay out of this. When AIG was making record profits in the insurance business was any of that equity shared with the taxpayers....I think not. Let AIG deal with its own issues and let the chips fall where they may. What would the employees of Enron think of a bailout of this company but not theirs. They lost everything too.

Enough corporate welfare. The root of the problem is the housing market, and of course the government can't figure a way to bail out the homeowners. Well how about instead of bailing out huge corporations that speculate day to day and futures making money day to day based on the land under our homes and all the interest they gauged out of the homeowners, the government would have not bailed out fanny and freddie, but instead made them lower the interest rates on all the bad mortgage loans the mortgages at the lower rate, does everyone realize that the Federal Reserve is a private corporation run buy bankers and not part of the Federal government. Maybe it's time we took back our money.

To Rich-362494, I just don't think you see the bigger picture. Yes, liquidating assets at fire-sale prices as you mention would be bad, but what you're not seeing is AIG shouldn't have gambled themselves into this kind of situation in the first place. Additionally, I don't pay my taxes in order for some corporation to maintain value in it's brand name - if these corporations can't maintain value on their own, then they don't deserve to have any value associated with their name.

If I go to Vegas and end up $100K in the hole, do I get a government bailout? That's what's happening here. Instead of bailing out AIG the feds should spend that money on laws and regulations that treat the stock market as a casino, because that's all it is and has been for decades.

All of the CEOs, CFOs, COOs, etc. of the failed financial companys should and must be held totally responsible for their greed and corrupt behavior. To begin with seize all their assets and "golden parachutes" to help defray the expense of bailing out the company.

Why should the U.S. Taxpayer foot the bill to let these characters live the life of luxury? The company heads expect retirees to live on Social Security, therefore if it is good enough for American citizens then it is good enough for them! I would also recommend prison time or hard labor in a community service, as a wake up call to the other "speculators" expecting a bail-out from the government.

In regards to AIG, yes it is important to protect the people holding insurance policies but not the executives nor key managers that allowed this to happen. The FBI needs to do a full scale investigation on this one!

Lets crash the entire US financial services industry because of a couple of greedy CEOs

It should crash because the entire industry is nothing but a house of cards that benefits no one but the top 1%. Propping it up via a "loan" isn't going to fix anything but delay the inevitable because it's a lot more than just a couple of greedy CEOs....it's the ENTIRE SYSTEM.

Absolutely Not the Right thing to do! We are allowing those who have believed themselves to be "entitled" and above reproach, to the protection and bailout of tax dollars, paid by honest, hard-working Americans. Americans that will never receive the same protection and bailout for their personal financial losses, generated by those who felt entitled to steal, lie, cheat, and prop-up bogus financial dealings that would not pass the "sniff test" ---!

I have mixed feelings about the AIG Fed loan. I don't like bailing out bloated corporations who overpay their CEO even, and especially, when those CEOs make bad decisions that undermine the viability of the market. That said, AIG is very much involved in money market funds which, since 1994, have supposedly been a safe-haven for those who prefer less risk over high yield. I moved most of my 401K out of stocks into MMF after my retirement lost 6K. Having heard that money markets were "safe as houses" for investment, I guess it is apropos that since the housing sector is down, there go the houses...and the MMF.

NO EFFEN WAY!

These EFFEN insurance companies love to gloat when they have huge positive margins, so where is all that margin now?

This is a WIN/WIN for AIG, they can't ever lose money! Why the HELL NOT?!

These firms get paid premiums for years and years and years, but they have nothing to pay out when something happens! AND THEN they try their damnest to get rid of the "Risky" policies, even if you've NEVER filed a EFFEN claim!

As is the case here in RI, many INS Co's are trying to pull out of the state on speculation that the ODDs are that we are due sometime for a major Hurricane. My insurance company sent an inspector to my home, when I had Never filed any claims and were threatening to cancel my poicy over items that they find wrong with my house NOW, but NOT 4 years ago when I bought it! SAME EXACT house that I bought and in the same condition if NOT BETTER!

Other friends of mine had thier 25 year old policy cancelled after they filed one claim for smoke damage. The company paid them about 10% of what they had paid into their company (NOT including any interest that they had earned).

HOW is that RIGHT?!

Now we the Tax payer have "agreed" to pay $85B for a failing "I DON'T GIVE A CRAP" Insurance Conglomerate? Why?

I want to see the list of every YEAH vote on that one!

I'm giving everyone I can the BIG BOOT in this election & WILL continue to do so until the BUNCH gets it right!

We should thak our congress and senitors. piss ass bush for bailing out all the rich fat cats. they dont give a @!$%# about the lower class of people. i'm talking about the people that just makes $20.00 to $50.00 a year. now do they give a @!$%# about the retired people who is on social security. i guess since they have giveing all the far cat andf rich people everything, there want be anything for the retired people again this coming year.

This $85B bailout of AIG is costing each individual taxpayer approximately $283. Those who have insurance policies with AIG are basically being subsidized by others who don't.

The so called loan and its repayment at a later time will be with inflated dollars worth less than the original loan along with the interest being paid on it. This is assuming that the AIG doesn't fail before repaying that loan.

Rewarding bad behavior by mega corporations may do even more damage to our economy and encouraging the same behavior by others.

To C.M.Carlen:

Do some research, back on February 2nd 2006, 4 top executives from AIG were indicted by a Grand Jury. Also still being investigated at the time was Greenberg who was ultimately forced to retire. Anyone in the insurance industry with some smarts could see this coming a mile away.

I find it amazing how the rich are always given an out. Even if they screw up. The poor and the middle class loose everything if they screw up. No government bailout, and no get out of jail free card with a golden parachut. Now the Federal government is on the hook for 600 billion dollars, thats costing us approximately $7500 for every household this year alone. That doesn't include the already bloated corporate welfare included in the national budget.

All of the charges against Greenberg were dropped and the Spitzer filed civil suits against him 6 in all then dropped 2 of those. Greenberg has a history of being looked at. Also his son was ceo of MMC and was ousted. That being said he was a super CEO at Aig. He also appears on Charlie Rose and gave his side of the situation. His take that AIG could be solvent on its own in the private sector.
Watch his interview here it is really interesting: http://www.charlierose.com/guests/hank-greenberg

The Federal Reserve is not apart of the U.S. Government. President Kennedy tried to bring the U.S. Currency back under the Government but, did not live to see it carried out. It is privately run are should I say tied into the World Banks. Have you heard of the Amero (Money)? Goggle Amero and read up. Have you heard of the North American Union? Goggle that one too. I believe we have been put into a controlled crash. The Dollar is suppose to be replaced in 2010 according to what I have read in the pass. Do some research and you maybe surprised at what you find on these two subjects. The middle class tax cuts we have been hearing about will come, because there will be no middle class. The cutting of jobs because of the companies sending their equipment to other country will stop. Because with open borders under the North American Union the people in Mexico and Canada can come here and work. By the way you can go to their countries and work too. Also 3/4 of AIG's debt is owed to over seas banks. Yes people we bailed out China, Russia, and Germany just to name a few. It is bargaining to look like we have reach that place up the creek were we don't have that paddle.

I said, the Federal Reserve is not a part of the US Government. I should have said it "is" but, President Kennedy wanted to put the money control back under the U.S Treasury.

Every one should think back to the bailout of Chrysler in the 80's. The govt backed a bailout and within a very short time the loans were paid and the taxpayers no worse for wear. The company is still profitable to this day by our govt supporting our business. Yes, there were some big mistakes made by these mortgage companies and banks, but Aig for example, if given time to liquefy millions of dollars of assets they still have, the loans can be paid back sooner than deadlines stipulated for repayment. The company will still be strong, our economy strong and the taxpayers no worse for wear not having lost a thing. This is smart business to help our companies and our economy.

Yes, and how did the bailout of Chrysler help Ford and GM, at the time their solvent competitors.