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You aren't a bit a skrew, you're a whole lot a skrewed.
It's a secured loan, with assets, most tangible and profitable, though a portion are in bad debt, the bad debt is still a recoverable asset that can be sold off and has already been figured into the over all picture.
The government will own 79.9% of the company. This is one of the big sticking points in Washington right now as to who will be responsible for the overseeing of the company. AIG can't make a move once the bailout goes through without first getting approval from whomever Washington appoints.
This is a short term loan at 12%.
Without the Bailout, AIG collapses into itself. It won't be worth the paper it's written on. It's an Insurance biz. It makes money by insuring thing. In this case world wide. You give the money to every american adult and within 1 month inflation will be so high, bread will cost more than your house. One of the reason for WWII was the Great Depression and the extra toll it took on Germany. Hitler gave the Germans a way to climb out, a sick depraved way, but the ppl bought into it because he promised them prosperity. You want that to happen again?? Russia looking to update it's nuclear arsenal. They're building a fossil fuel based economy. They get rich if we go broke.
Since this is a loan and not a giveaway who's going to pay it back? With AIG worthless and the world economy in a great depression, I don't see the United States as having a lot of friends right about then. Our broke-ass government wouldn't have the money to defend us. Do you really think anyone is going to come to our defense if Russia decides to blow us off the face of the earth? I think most would thank them, except for the Canadians to the north, because they would have to deal with the nuclear fallout.
I realize that this is a lilttle over the top and extreme, but they say it is written that the love of money is the root of all evil.
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All my posts are not indicative of what I like, but rather a smattering of what I find. Society dictates what they feel is acceptable, not me.
u dont know much about that AIG bailout since it doesnt directly effect me, but i know my brother said that something to the effect that it would cost him 10 grand additional in taxes over his life. dont quote me on that cuz i could have miss remembered what he said
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Remember, only you can prevent forest fires. But also remember that you can't do shit, because Mr. T is the one who starts them, and no one can stop that crazy fool.