Wednesday, September 17, 2008

You always wanted to own an insurance company -- right?

Too many people going underground. Too many people reaching for a piece of cake.
Too many people bulled and pushed around. Too many waiting for that lucky break.
- Paul McCartney, Too Many People
As part of the humongous bailout of insurer American International Group, the federal government will lend the company up to a whopping $85 billion — of taxpayer money. It may seem like a risky investment, but some analysts say the government is likely to end up making a tidy profit from the deal through interest and stock profits.
Others, like Peter Schiff, author of "Crash Proof: How To Profit From the Coming Economic Collapse" and president of Euro Pacific Capital, say the government has made a stupid move.
"I think they will lose this money and more. This is not a good use of taxpayer money," Schiff says. "They're flushing $85 billion down the drain. Who knows how much more? I mean, I have no idea how much money AIG is going to lose. But the government is not going to run the company any better than the former management. These are the guys that can't run the post office — how are they going to run a complicated insurance company?"
- David Kestenbaum, NPR

WASHINGTON (AP) - House Democrats outlined $18 billion in tax incentives over 10 years for alternative energy and efficiency improvements Monday, proposing to pay for them by rescinding tax breaks for the biggest oil companies. Meanwhile, a sharp debate continued Monday over whether the Democrats' energy legislation actually will produce any more oil from offshore waters.
"Somebody please explain this to me: how can the US government, which is running a current deficit of $438 billion and has a national debt of $9.7 trillion, "guarantee" $85 billion in revolving credit? I know, I know ... we "print more money." But to do that, someone out there has to buy our notes. When are they going to say "enough" ... or the interest rate simply fall too low?"
- Kathy Gill,
"Disappointed that taxpayers are called upon to bail out another one. Certainly AIG though with the construction bonds that they're holding and with the insurance that they are holding very, very impactful for Americans, so you know the shot that has been called by the Feds — it's understandable but very, very disappointing that taxpayers are called upon for another one."
- Sarah Palin, September 17, 2008
Our government can find 85 billion to bail out a failed insurance company, yet they struggle to fund $18 billion to fund alternative energy. What's wrong with this picture?
They argue over funding for the future of our country, yet seem to have no trouble giving 85 billion dollars to a loser.
Is it hot in here or is it me?
You took your lucky break and broke it in two. Now what can be done for you?
- Paul McCartney, Too Many People
The Feds can bail them out, Paul. Welcome to America.


kimmyk said...

i didn't know anything about this till today.

something to be said for being cut off from the rest of the world for a few days...its like living with your head in the sand...y'know?

it was nice there.

*heavy sigh*

how many zeros is that ya think?

Anthony said...

Billion? 9 zeroes and a dollar sign.


That's $283 for each person in America.
They should have just sent us a bill.

Is there room in the sand for one more?

Handsome B. Wonderful said...

Yeah it sure seems stupid doesn't it? Why fund companies that are dead weight instead of funding new, promising, up and coming industries?

kimmyk said...

come on in, the sand is fine this time of the year.

that's a lot of zeros.

and to answer your question-
nope. didn't flip a switch once, but i'll be honest withya and tell ya, i turned my roadrunner cable box on and off like a thousand times....JUST INCASE.

Kate Michele said...

i like how the market crashed, you know the same market Mccain wants to invest our SS in, the same one he just this week called a casino, huh?!