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Treasury take on AIG bailout hits $15.1B

Discussion in 'Current Events' started by MagicBob, Sep 11, 2012.

  1. MagicBob

    MagicBob Registered User

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    Huh looks like Obama did the right thing bailing out the financial sector huh? :action-sm

    inb4the "but Bush!" :D
     
  2. weeniewawa

    weeniewawa it's a man, baby!!!

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    and GM still owes us something like $35 billion

    and they don't have to pay any corporate income taxes

    another great investment my bin obama
     
  3. Ballbuster1

    Ballbuster1 Sailing into the Danger Zone...
    Wackbag Staff

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    Lets see... The govt spent trillions on many loans and gets some profit back on 1 loan.

    Yeah, the bailout was a huge success.
     
  4. Josh_R

    Josh_R Registered User

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    Nope. Still philosophically wrong to gamble taxpayers' money on private companies.
     
  5. whiskeyguy

    whiskeyguy PR representative for Drunk Whiskeyguy.

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    Wait, I'm confused. Now doesn't the government owe someone $2,265,000,000 in capital gains tax? (How much a private investor would have to pay for stepping in and "saving" AIG)
     
  6. MagicBob

    MagicBob Registered User

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    ya thats what it means. *facepalm*...

    why is it that some make this leap in "logic"? There is a story about 1 loan getting paid back so that means that there was only profit on 1 loan. I really cant fathom how someone would even think like that. I guess there is the key, there isnt much thinking behind it.

    and its one thing to look at TARP in the metric of "did we make money" to judge its success... another way to look at it is that ..."money still exists".. everyone didnt end up with ZERO dollars when it was all done (financial system meltdown).

    http://www.treasury.gov/initiatives/financial-stability/Pages/default.aspx
     
  7. Norm Stansfield

    Norm Stansfield 私は亀が好きだ。

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    Maybe then you would've lost some weight, and we wouldn't be making fun of your fatty mac'fatness TM now.
     
  8. mrbucket75

    mrbucket75 Registered User

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  9. Creasy Bear

    Creasy Bear gorgeousness and gorgeousity made flesh
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    A point I've made before, but worth repeating...

    In the near future... WHEN the Chinese are calling the shots in the People's Republic of America 2: Electric Boogaloo... the only place you'll be able to see one of "those people" will be in a cage at a zoo.

    You think whitey's a bad boss man? Wait'll yellowey is in charge. Boss yellow man's idea of givesmedat is a bullet behind your ear.
     
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  10. KRSOne

    KRSOne Registered User

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    When the dollar becomes worthless and foreigners don't want it anymore, every foreigner with US dollars will start buying up everything before it becomes worthless and we will see some real inflation as the dollars come back home.
     
  11. MagicBob

    MagicBob Registered User

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    http://www.washingtonpost.com/busin...57294a-4314-11e2-8c8f-fbebf7ccab4e_story.html

     
  12. whiskeyguy

    whiskeyguy PR representative for Drunk Whiskeyguy.

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    MagicBob, hate to inconvenience you with math, but adjusting for inflation we loaned AIG $200 billion, and recouped ~$205 billion. That means we gave them a 4 year "loan" at a 2.4% interest rate (rough average of .6% per year), which is insanely low. When you consider opportunity cost and the time value of money (not to mention administrative costs to bailout AIG), the federal government lost money on this deal.
     
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  13. MagicBob

    MagicBob Registered User

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    cept for the part where the monetary system didnt melt down.... taking that into consideration I think it was a pretty good investment.
     
  14. whiskeyguy

    whiskeyguy PR representative for Drunk Whiskeyguy.

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    1) You can't quantify that value.

    2) When you bail out companies, you weaken the system. Capitalism is a great system because it's based on the concept of Darwinism. The strong survive and the weak fail... and eventually you can stand upright and use your thumbs to send text messages. In America we're drifting towards helping the weak companies while punishing the strong ones. Which way will our economy (d)evolve if we continue with those types of policies?
     
  15. MagicBob

    MagicBob Registered User

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    a lot

    world wide monetary system melting down = bad... to put if very simply.

    the system was put at risk by the derivatives market. Everyone (meaning financial institutions) were so heavily into that market that when it crashed, it could have take the entire system down with it. This want a case of "we need to let the system fail to have a stronger one"... it was a case of one specific risk that threatened the entire market. It really wasnt a case of a overall weakness in the market, it was the case of a very strong specific poison that was allowed to fester and grow. Had it been taken care of (regulated) it wouldnt have threatened the system.

    You like to talk about how it would be great to let it all topple and rebuild from nothing. Sounds great, cept when it means that everything YOU, and this case I'm not talking about the rhetorical you, but YOU personally have is worth ZERO. The money you had in the back? Gone. Your pension? Gone. The cash in your hand? worthless. You wouldnt be able to sell your house, car or anything of large value for a long time (think decades) cuz no one would have any $. Think our current economic situation is bad? Its nothing compared to what could have happened.
     
  16. Yesterdays Hero

    Yesterdays Hero She's better than you, Smirkalicious.

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    It's ok. The debt will never be 'repaid'. The debt doesn't really mean anything at this point.
     
  17. whiskeyguy

    whiskeyguy PR representative for Drunk Whiskeyguy.

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    That's bullshit and you know it. Even if it hurts for a while (our economy wouldn't have failed with AIG), we'll end up being stronger. One of our problems is we want band-aids to make us feel cozy right now... that's what entitlement programs are, but that destroys our future as a country.

    What happens in 50 years when our economy fails anyway? If you fell off a scaffold, wouldn't you rather it be on the bottom plank than the one 40 feet up?
     
  18. MagicBob

    MagicBob Registered User

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    uhmm... no its not bullshit.

    thats just it.. .it wasnt JUST AIG... it was the entire financial sector that had 16 times the WORLDS gdp tied up in a house of cards market. If all of them had been allowed to collapse the financial system would have been taken down.

    again, this wasnt the case of a systemic weakness in the market... it was one specific thing that was allowed to get out of control.
     

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