Is the AIG bailout Absurd?

17 09 2008
A woman exits the Ame...Image by Getty Images via Daylife

AIG: The Biggest Bailout

September 17, 2008 10:00 AM ET | Kirk Shinkle | Permanent Link

The Federal Reserve extended an $85 billion loan to American International Group to be paid back as AIG sells off some business in the biggest government takeover so far in the ongoing credit crisis. The deal is designed to let the Fed unwind AIG’s hugely complex business in an “orderly manner, with the least possible disruption to the overall economy.” The government will take a 79.9 stake in the firm, along with the right to suspend dividends.

I think every time the government does a bailout it is ABSURD !!! There are probably a thousand investors that all have multi-million dollar investments in the firm and they HAD TO have exerted personal pressure to get this chunk of cash.

So US firms can gamble, give mega paychecks to it’s top executives, loose big in high risk markets, and then get bailed out by us taxpayers. That’s ABSURD.

There should be some NEW LAWS unfortunately. But first let’s cap executive salaries… it’s disgusting when guys like RIchard Grasso get almost 200 million dollars from a non-profit corporation and dirt bags like Robert Nardelli get half a billion for loosing half a companies stock value. Put some kind of cap in law.

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