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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: sylvester80 who wrote (32992)	9/16/2008 8:22:25 PM
From: nigel bates	Read Replies (3) \| Respond to of 149317

I disagree. I think the Fed has made a smart move in this particular case. AIG's subsidiaries are mainly decent businesses, with significant value. The problem was the vast losses on credit swaps. If the Fed had stood back and let bankruptcy happen, the entire financial system would be facing meltdown. There's an argument for letting that happen, but it's not one that any government is going to contemplate. Note that the Fed has seized control in exchange for a loan. No stockholders are going to get anything unless the whole mess is wound up for a profit (which is not entirely impossible). And the government gets 80% of that profit - so no moral hazard. It's possible that this will end up costing the taxpayer, but it will cost a lot less than allowing bankruptcy to happen.

To: sylvester80 who wrote (32992)	9/16/2008 8:26:09 PM
From: zeta1961	Read Replies (2) \| Respond to of 149317

Your question although rhetorical struck a nerve with me..disclosure: my family came here in the 60s fleeing totalitarian communism..even to say I hate communism doesn't adequately capture my contempt for it... But I'm so furious with what these sleaze bags have done that I wish I could send them somewhere, anywhere to experience the "real communism" for a spell...................... Americans are too numb, or otherwise preoccupied because we should be rioting in the streets this week...................