Fed in AIG rescue - $85B loan

[javaguru]

Every company is busy trying their best to make their numbers look bad so they're next.

I hear airline companies are busy trying to do the same thing. Expect bailouts for bankrupt airlines very soon. Didn't Frontier lay off thousands last week? Nothing scares the govt faster than news of 'layoffs'. It's the smoking gun companies can use to scare the govt to give them money.

r

Detroit is lining up for welfare...My head is about to explode...I can't stand welfare for anyone. They say these corporations can't be allowed to fail, I say let them fail...I'll weather the shit storm and business will get a lesson in bitch slapping. Everyone knows risk and reward but apparently, if you're big enough it doesn't apply. If you're big enough you can take excessive risks and have a safety net.

 

[Creepusmaximus]

Every company is busy trying their best to make their numbers look bad so they're next.

I hear airline companies are busy trying to do the same thing. Expect bailouts for bankrupt airlines very soon. Didn't Frontier lay off thousands last week? Nothing scares the govt faster than news of 'layoffs'. It's the smoking gun companies can use to scare the govt to give them money.

r

I don't think anyone will save the airlines. Service is crap and one or two majors must die. No one has a good opinion of any airline except South West and they aren't going out of business.

 

[Razorguns]

I don't think anyone will save the airlines. Service is crap and one or two majors must die. No one has a good opinion of any airline except South West and they aren't going out of business.

Talk to your history professor. The govt already gave them a huge bailout after 9/11. They will have no problem fucking up the nation's air system to get those bailouts. Think those $50 per bag charges were because of oil?!

r

 

[75th]

AIG has real assets and businesses, they are just having a short term problem. They'll sell off some assets and everything will be fine with them.

The other option was BK and that would have had incredibly bad effects on the banking and stock world. AIG is into everything.

+100

People dont realize that only AIG the holding company was in trouble. Insurance, annuity, ILFC, AGF were all in tip top shape.

 

[-Ariel-]

+100

People dont realize that only AIG the holding company was in trouble. Insurance, annuity, ILFC, AGF were all in tip top shape.

I'm glad u know what u were talking about, cause it sounds like the credit crisis would only grow exponentially if AIG fell... projections are that India and China will be right with us in 2020 due to technological superiority and I hope this is not a precursor. I was reading an article awhile ago that said that the next president will have more economic impact than any other president in history, hard to believe, but thats what I read.

 

[Razorguns]

The Fed added $50 billion in temporary reserves to the banking system today through overnight repurchase agreements, or repos. The European Central Bank offered 70 billion euros ($100 billion) in a one-day refinancing operation and the Bank of England injected 20 billion pounds ($36 billion). The Bank of Japan added 2.5 trillion yen ($24 billion) and the Reserve Bank of Australia injected A$1.85 billion ($1.5 billion).

Be nice to a foreigner tomorrow. They're saving your asses.

r