I really couldn't care less. The Fed makes Libor plus 850(currently around 10%), and if AIG cant pay the loans back by 2010, or they go into default, then their divisions get broken up and sold off, making a tidy profit for the government.
<<“We cannot attract and retain the best and brightest talent to lead and staff” the company “if employees believe that their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury,” he said.>>
To quote Jon Stewart's closing in his rants against CNBC: "Fuck you!"
In the kleptocracy that is Wall Street it was the "best and brightest" who led the country down the primrose path. I'd sure hate to see what trouble we'd be in if they had hired people with scruples.
The biggest fall out of the bonus scandal may be Obama's economic plan. While we should all be outraged at AIG, we should not shoot ourselves in the foot and put a halt to stabilizing the financial sector. If it fails, the economy fails.
Look at China, while we fiddle around slowed by the vagaries of Democracy, they create stimulus bills without opposition, and are now buying up many good deals world wide in a "fire sale." And that's with "our" dollars, not theirs.
SHANGHAI -- Chinese companies have been on a shopping spree in the past month, snapping up tens of billions of dollars' worth of key assets in Iran, Brazil, Russia, Venezuela, Australia and France in a global fire sale set off by the financial crisis.
The deals have allowed China to lock up supplies of oil, minerals, metals and other strategic natural resources it needs to continue to fuel its growth. The sheer scope of the agreements marks a shift in global finance, roiling energy markets and feeding worries about the future availability and prices of those commodities in other countries that compete for them, including the United States.http://www.washingtonpost.com/wp-dyn/co ... 03293.html
AIG, Merril Lynch, Leh, etc. CEOs gave themselves massive, multi-million dollar bonuses for 30hours per week of work, the remainder performed on the golf course while they were driving their companies into the dirt. The Fed's "martket's" response was to give them billions in taxpayer dollars from joe sixpack's daughter's college fund. Sounds like a great business plan, what american CEO would not try to parlay that into a double.. one more time
paulthefan wrote:The Fed's "martket's" response was to give them billions in taxpayer dollars from joe sixpack's daughter's college fund.
No they didn't. The Fed "created" the funds, and electronically transferred them to the institutions. No actual taxpayer funds have been used(so far). Normally inflationary, but not in this environment.
guru wrote:I really couldn't care less. The Fed makes Libor plus 850(currently around 10%), and if AIG cant pay the loans back by 2010, or they go into default, then their divisions get broken up and sold off, making a tidy profit for the government.
i don't see how on earth you can keep waffling on with this drivel
it doesn't make a shitload of difference whether fed asks for libor + 10,000, they ain't getting a red cent back !
i never looked at this ugly named topic before but it seems to never die, so it looked a view on a leisurely friday
looking at near 100 posts here, no one has actually bothered to get to the colonel ( or even kernel ) of aig's death ???
i've been e-mailed addenda from a general 'broker for months ( along with any other guy who opens an account ) - post it next
eldrick wrote:[it doesn't make a shitload of difference whether fed asks for libor + 10,000, they ain't getting a red cent back !
If that's the case(and it may well be) there will be a nice yard sale on the front steps of the Fed in a couple of years(or sooner). I'm sure those coveted insurance divisions will fetch a pretty penny.
- let's not beat about bush here - mexican cottonpickers on few $/week getting $500k mortages off 0 deposit on proviso they can repay monthly mortgage for 25y ( on guarantee they'd stuff house wth 1/2 dozen cottonpickers, constantly, to pay it back ) - worth $100 billion
banks ( name them yourself - citigroup, merill, lehman, etc) accepted these mortgages & deluded themselves into thinking they had rock-solid/ricardo montalban clients
wrapped these shit mortgages into bonds, which rating companies like moody's, standard & poor's, fitch's didn't do due diligence & accepted banks' word of reliability & wrapped this crap into AAA ( treasury status ) or even AAB ( top-junk )
AAA/AAB has to have an insurer for failure - considered impossible for this quality of product
aig were just poor suckers who stepped up to the plate...
We're mad as hell and we're not gonna take it anymore!!!!
Of course the feverish atmosphere contributes to theater of the absurd. Where I live the city workers just got a 4% raise, followed immediately by an announcement that they would all be obliged to take an unpaid furlough amounting to 5% of their annual pay. (Say what?)
This prompted the local union thumpers to proclaim that city workers are just like AIG suits in terms of stealing taxpayer money and that unions are driving the nation to bankruptcy -even though the city workers will take a net 1% pay cut. It's an odd world.