I saw this coming this morning but only could post a minute ago about it. This means now the gov’t owns most of hte mortgages in this country and now the largest insurance agency. Folks..socialism is so close..just nobody is looking at it right now and it’s right there staring us in the face. Supposedly this was to stop a worldwide meltdown..it’s really another attempt to bandaid an already broken system. The gov’t has printed nearly 1 trillion dollars out of thin air…the next couple of preses are going to ahve a hard time as is the entire country for a while..unfortunately.
*Edit* The big Picture has a ton of links and information about this story. there’s one list at the beginning that irritates me:
Here are 4 items regarding the AIG bailout that are worth thinking about:
1) AIG is the world’s biggest insure. Had they gone belly up, they might have turned the current recession into a depression;
2) AIG was a huge Credit Default Swap writer, and that insurance required collateral to be posted, depending upon such factors as credit rating and credit spreads;
3) Hence, why this was a liquidity issue, not an insolvency problem;
4) Moral Hazard, successful avoided in the Lehman Brothers bankruptcy, was put aside given the massive size of AIG — if any firm was too big to fail, it was them.
LET IT FAIL!!! it’s going to suck for everyone..IT NEEDS TO SUCK and turn off the debt firehose!!!!