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Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,830,626 times
Reputation: 6438
Quote:
Originally Posted by FarNorthDallas
Listening to the former CEO of AIG this morning say that AIG is a "national treasure" and "must be saved" just made me sick. It's a corporation.
Why it must be saved....
All the same, it’s clear AIG’s new chief, Robert Willumstad, needs to do something, and fast. Any move that could support AIG’s stock would be good news for Greenberg, who lost $3.1 billion last week on the stock’s 46% plunge. He has since lost much more, with AIG shares down an additional 37% on Tuesday.
I don't think it has anything to do with AIG, except that it has widespread exposure beyond the U.S. It's all about calming the global markets. Many foreign countries hold our debt, keeping us afloat, and I'm sure they have made it painfully clear that we need to get our house in order. My feeling is the Fed is only helping those entities that it feels it has to help to prevent a global tsunami from sweeping away the underpinnings of the world financial system. I'm sure they'd love to wash their hands of it, as indeed they should in a normal free market economy. But we aren't in a free market economy and our staggering debt has put us in the disagreeable position of having to answer to other countries. We might like to think we're free and independent, but the truth is, we have foolishly mortgaged both of those things. We are no longer the world's absolute superpower; we are now a weak link in a global chain.
But I agree 100% that the execs of any company requiring intervention should receive NOTHING. Their golden parachutes should be cut adrift. If they're going to run their company into the ground and put billions in jeopardy, they should go down with the ship. Actually, they should have to repay some of their egregious compensation and be held legally accountable. But that's unlikely to happen, because there are far bigger things to worry about.
Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,508,145 times
Reputation: 1721
[quote]
Quote:
Originally Posted by goodbyehollywood
They're trying to calm the markets. If AIG went bankrupt, global markets would completely implode tomorrow. Investors are so panicky that they would dump everything, driving prices to once-unimaginable lows, pushing more companies into the red zone and sending those teetering over the brink. This mess is causing good companies with solid fundamentals and long-term prospects to have liquidity issues. The destruction is spreading further faster than they bargained for, and I'm sure there is global pressure to act... and act swiftly. QUOTE]
GHB I understand your getting at. But the worst kept secret in the financial world is that there is a whole-lot-a bad paper floating around. Anyone in the game right now should have a grasp of that. And should be prepared for all the consequences of it if they decide to play.
I be honest with you. I could care less if the market panics because: 1. It opens opportunities for the savvy investor to get in on the cheap. 2. We all had plenty of warning with the Bear Sterns situation. Heck the powers that be pulled the "stop the panic" card out when they bailed Bear out. They've gone to the well to many times with that excuse. It for the most part is done with.
I tired of this interference in our supposed free markets. Let us let the chips fall where they may. And make the best of the aftermath. We will rebuild and hopefully in the end we will be better for it.
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