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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (33750)	3/10/2009 8:56:20 PM
From: Madharry	1 Recommendation Read Replies (2) of 78731

My point is we should have allowed aig to fail and go bankrupt. when you are a mom and pop shop and you offer credit you take the risk the customer wont pay. my in laws had a small business selling advertising and my mother in laws job was to sue the customers who didnt pay and it was a full time job. if she couldnt collect from the company, she couldnt get reimbursed from the govrnment except by writing off the debt. that we have failures and bankruptcies and small businesses are usually careful about selling so much to one customer that if they dont pay they go belly up too. People who trusted aig credit have to take the consequences. if they extended too much credit to aig too bad. there is no reason for the govt to bail out stupid decisions or to make hedge funds risk who took the opposite side of these transaction . Im impressed that the weasel collected $280million and taxpayers are shelling out $300 billion to cover his losing bets and he keeps what he collected. Thats like me going to the roulette wheel doubling up evertime i lose and keeping my winnings. when i finally i have a terrible run and owe billions of dollars to the casino i walk away and let the the government pay the tab. Not only should the weasel be investigate but his bosses too and whatever regulators were supposed too look at these profits. I remember when i worked for a moneycenter bank, we had a branch in norway that was pretty much break even. one year they reported a huge profit, and that quickly generated an audit. It turned out that their trading unit decided that norweigan bonds were a great opportunity so they bought some and the bonds appreciate greatly because of a decline in interest rates and appreciation against the US dollar. the audit unit made a big deal over whether they had the authority to engage in such a transaction as they were concerned about the volatility. I guess AIG auditing had no such concerns nor did the regulators. after all we all know that real estate prices only go up and never down. Im now convinced that most of our elected and appointed officials should be replaced by successful small business people. as a nation we would be much much better off.

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