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The government announced a plan to bail out yet another struggling giant, AIG overnight. This coming after McCain and Obama both agreed that the government should not bail out anymore institutions. This should be interesting how each candidate re-aligns himself with the news. If only Ron Paul were the nominee. I think he would be leading by a landslide.
Im aware of that. I was referring to the fact that if this gets viewed as a favorable action in the future (i.e. if wall street marks a gain today), then the two candidates will want to re-align themselves as to make it seem that they "wernt against the bailout... They actually meant such and such" when they said that. That way they wouldn't look stupid. Sorry if I wasn't clear on that in my original post.
Im aware of that. I was referring to the fact that if this gets viewed as a favorable action in the future (i.e. if wall street marks a gain today), then the two candidates will want to re-align themselves as to make it seem that they "wernt against the bailout... They actually meant such and such" when they said that. That way they wouldn't look stupid. Sorry if I wasn't clear on that in my original post.
Don't worry...I got your drift and it will be interesting.
Im aware of that. I was referring to the fact that if this gets viewed as a favorable action in the future (i.e. if wall street marks a gain today), then the two candidates will want to re-align themselves as to make it seem that they "wernt against the bailout... They actually meant such and such" when they said that. That way they wouldn't look stupid. Sorry if I wasn't clear on that in my original post.
Of course Wall Street is going to make a gain today- the world's largest insurance company was just saved from insolvency. That doesn't mean it was the "right" thing to do- it just means that the investors don't have to be concerned about losing their asses......
The government announced a plan to bail out yet another struggling giant, AIG overnight. This coming after McCain and Obama both agreed that the government should not bail out anymore institutions. This should be interesting how each candidate re-aligns himself with the news. If only Ron Paul were the nominee. I think he would be leading by a landslide.
Actually, as a taxpayer this is the kind of bailout I can live with. The government lent AIG 85 billion at an interest rate of 11.3%. That's a pretty good return on investment for the taxpayer considering that you're lucky to get 2.5% on a bank savings account. Of course the high cost of servicing this loan will force AIG to scramble to find alternative funding at a better rate. So I suspect the loan will be repaid in very short order. In the meantime the world's largest insurer doesn't go belly up.
[quote=JimMe;5302031]Actually, as a taxpayer this is the kind of bailout I can live with. The government lent AIG 85 billion at an interest rate of 11.3%. That's a pretty good return on investment for the taxpayer considering that you're lucky to get 2.5% on a bank savings account. [quote]
Yes, not to mention AIG has to pay this LOAN back in 2 years. I don't see this as an out and out bail-out. I see this move as a win-win strategy and an intervention that I, as a tax payer, can live with.
Of course Wall Street is going to make a gain today- the world's largest insurance company was just saved from insolvency. That doesn't mean it was the "right" thing to do- it just means that the investors don't have to be concerned about losing their asses......
Just for the record, the Dow Jones fell almost 450 points today...
McCain and Palin are already softening their original stance, though they are still standing by what they said. I havn't heard anything out of Obama camp.
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and it will be interesting.
