Sunday, March 1, 2009

AIG, needs more money

Getting 30 Billion more.

When will it end. Really? When will it end?

The public is being patient, for now, but for how long? We can not continue to give these private companies money, we just can't. And who is paying for this? Yes, the taxpayers, but how? Remember, China is never far behind us, paying our debt, while shipping their goods here on the cheap. When is this going to stop?

The public is angry at all these private companies, pissed to high heaven. Obama, for now, is lucky to have the public sentiment on his side, but in the reality view even he can not continue to save these horribly run companies. Some will have to fall, just as one auto giant will.

Struggling insurer American International Group Inc. will receive up to $30 billion in additional federal assistance in the fourth government rescue of the company, people familiar with the matter told The Associated Press on Sunday.

The new infusion is intended to prop up AIG _ once the world's largest insurer _ as it is expected to announce $60 billion in quarterly losses early Monday, a person said on the condition of anonymity because the discussions are still ongoing.

The company, which is considered too large to be allowed to fail, previously received about $150 billion in loans from the government, which currently holds an 80 percent stake in the company.

Under the new deal, the U.S. Treasury and the Federal Reserve would provide about $30 billion in fresh capital to AIG from the government's Troubled Assets Relief Program, or TARP. The money would be provided as a standby line of equity that AIG could tap as its losses mount, the person said.

AIG has already received $40 billion from TARP.

Just as the banks, especially Citibank, we are nationalizing these industries. No one can walk around with 36% of solid ownership and not be able to tell Citibank what to do, because the government is telling them what to do. The government owns 36% of Citibank and this won't be the last bit of money we will continue to pump into this bank.

Again, I have no problem with nationalizing these banks, hell I look at them that way already, but we won't be able to be a savior for them all. That is fiscally not available, nor a wise option in the end.

So, the fatcats whining about the rich folk paying higher taxes are on deaf ears to the public. It was these fatcats that ran these companies into the ground only to need us, the lowly taxpayer to save their asses.

This is what is going on.


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