We gotta stop bailing out Citibank, AIG, etc...

they have gotten enough of our money. They keep coming back for more. Yet, we keep hearing about misuse of funds. There has been no oversight. Sorry, we need to stop this raid on tax payer money to prop up these institutions. It's time to let them fail.

Because those institutions can't be absorbed by other institutions, we will have to bail out the FDIC to make good on those hundreds of billions if not trillions in deposits.

:shrug:

Look at their balance sheets. The amount of retail and commercial deposits they have is enormous.

My heart bleeds.

:nopity:

Banks take in deposits on which they pay X% interest.

Banks lend money to borrowers at Y% interest.

If Y is greater than X, and if the borrowers repay the loans with interest, then the bank makes money and the depositors get their deposits back with interest. If the borrowers do not repay their loans, then the bank fails and the depositors do not get all of their money back.

Banks do not keep deposits stored in a vault.

If the asset side, i.e. the loans and investment securities you outlined, declines too far, then the deposits cannot be recouped in any decent amount if at all.

:wtf:

They call it "leveraging", but it's really a ponzi scheme.

Would we give money to Madoff to pay back his investors?

What I can't believe is people still think that these guys on Wall Street are going to save the economy.

:wtf:

The economy is already in the toilet because we did things their way!

Time for some new ideas and some money to go to individuals-not greedy corporate monopolies-to start up their own businesses which would also create jobs.

Time to do things a new way & kick the old way to the curb!

Let the chips fall 'where they may'.....which won't be "good" AT ALL. And let's begin again.

This mouth-to-mouth resuscitation to a TRULY dying patient, with no hope is absolutely ridiculous/futile.

RIP AIG, Citi.....you failed and are DOA.

We are captives of these banks, and they know it. They know they can get away with the misuse of a (relatively) small amount of funds because they have the global economy by the balls.

no company should be allowed to get so big that their failure can destroy the country.

What ever happened to the anti-monopoly laws?

effectively took anti-trust and turned it into pro-trust. Even Clinton was quite conservative. I vote for them to crash.

Too many people I know and love have pension funds or 401Ks or insurance policies that would implode if AIG was to fail.

They suck, but they don't suck so much that I want my neighbor to starve because AIG are a bunch of fuckers.

Honestly, people do not have a clue on this subject. They think it's like letting one of their Main Street banks fail. We have a backbone in this country that's already missing a few vertabra. The whole spine will turn to dust if these huge institutions collapse. AIG insures everything from your state and local governments to the life insurance policy you've paid on for 50 years and thought you had with some other company! It's sort of the FDIC to the world. Too many people are looking at this like it's just a building in New York instead of one of the few things standing between you and eating your cat to stay alive. This is no stupid TV reality show. America is over entertained and under educated and can't get it's brain around thus ultimate reality show!

until we can see all that is on the books and clean the mess out. Then put them up for bids. There's no other way out. Failure is not an option unless we all want to fail with it. And nationalizing it forever and a day won't work. AND, we must break up components of this company (and any others that fail) into other separate companies because it is incapable of keep going at such levels.

Right now we have people working at high levels of these companies who are "getting it while the getting is good", much like what was happening at Enron when they were dying, which brought down the company, its other employees, investors, and customers so that those fat cats could disappear with a big wad of dough! The same thing is happening at the banks now. We need to take them over immediately, and kick out these bums and put them in PRISON for the criminals they are and replace them and the accounting/accountability rules that governs them so that we don't ever have to do this again.

It's perfectly solvent and not in danger of failing.

The financial arm of AIG is the black hole that's devouring all of our money.

See: http://www.ritholtz.com/blog/2009/03/solvent-insurer-insolvent-insurer/

People just want a simple answer, no matter how disastrous.

like one would a four-year old. I hate when people say we need to do this, or that, but don't explain what the implications are..how it would all work. If this is done, this will happen, and if that happens this happens..etc., etc, And because so many people seem to have differing opinions, I want to understand all the options, and I want all the opinions to come from people who teach economics.

I think the infusion of money is only delaying the inevitable. These companies will fail and we will not get the money back. The US goverment needs to cut it's losses now.

but right now they own a large chunk of these companies. They got to recover otherwise we completely lose our investments in them and later on, hoping they rebound, we'd be able to sell on, recouping some of the money.

Letting AIG, Citi, etc go now may not be the best move.

Is it gambling? Sure as heck is... if it works then everyone will say the right thing was done. If it doesn't people will say the government were tosspots for gambling away all these funds.

Right now it's anyone's game.

Mark.

It's as simple as that. Face the fact!

Now "cut your loss, HANG the thief (so he doesn't come back to *bugger us again*), and "move on"!

That's my BEST (which won't be listened to) advice.

Peace,
M_Y_H

Hell, anyone with "investments" has already cut and run or are idiots. It's the fact that AIG and these others are the underpinning of business throughout this country and the world. Little Main Street can't go far with a defunct monetary system and that means no jobs, no food in the non-existent stores, etc. This isn't people trying to get their money out! This is your employer's ass. And if you don't have an employer, you won't find one ... ever.

Anyone who doesn't "hang the thief" that stole from them is a COWARD. And it just enables the theif to bolder and higher theft.

How much will you have to lose? How much will you suffer UNTIL YOU ARE ANGRY ENOUGH TO FIGHT BACK AT THE PEOPLE/BULLIES WHO STOLED FROM YOU???

We're back in Kindegarten, b/c we won't stand up to the bullies! REALLY!

That much I am sure of.

we're actully bailing out the counterparties of AIG. AIG is already 80% owned by the government. But if AIG cannot make good on their insurance, you're really going to see panic on Wall Street and throughout the economy.

It sucks, but that's the way of the world.

That's a SECRET! Even though the the US government is PROMISING our future earned taxed dollars to "whomever this TROLLOP" is....

DESPICABLE! *spit*

Gretchen Morgenstern of the NYT started letting the cat out of the bag on Saturday.

Additional info from the WaPo and WSJ.

The bailees are the usual suspects, pretty much. Goldman Sachs, etc.

The big surprises are a couple of French, that's right, French banks who are raking it in. Apparently the CDSs out of AIG's London branch, which seems to be the real locus of the problem, did a lot of business in Europe.

I checked over in Freeperville to see if the Paris connection had hit over there. Nada. They're salivating over Krugman apparently using the word "dither" in the same sentence as "Obama" with respect to the economic plan.

Rush will pick it up on the French this week, perhaps.

I'm about ready to be ill. Someone, like Obama, is simply going to have to start telling the truth about where the money is going, and why. The latest enticement to the hedge funds to invest in car loan CDOs is a risk socializing, profit privitizing monster that sounds like Bob Rubin thought it up. I just don't know where it is going to stop.

CAN be broken up with losses going to share holders and bond holders. we CAN insure against losses in 401K`s and pension plans. we CAN break these fuckers up! this "systemic risk" bullshit is a scare tactic like the WMD crap. if we buy into it we are screwed. people with 401K`s have already seen the value of those plans drop 40 to 50 percent over the last year. if we continue the way we are with these bailouts and pieced together rescue plans you are going to see your 401k lose ANOTHER 40 to 50 percent!!. time to STOP THE BULLSHIT!!

That those fuckers would keep coming back to the trough until we all stood up and said 'no more!'

Isn't it time we did?

Those fuckers, IMO, need to fall squarely on their faces.

http://karmabanqueradio.com/2009/03/07/1020-the-truth-about-markets-07-march-2009/

If there is any truth to what he is saying, the bailout was just more robbery. And we all went along with it.

people aren't out in the street, kicking their a$$es.

If I was losing my house because I lost my job, damn straight I'd be on them like white on rice. :grr:

We've seen the TV medical shows - where a doctor or EMT is zapping someone with a defibrillator or pounding on their chest and they are pulled off by someone else who says "it's time. they're gone"

Since September 2008, we've been defibring with dollars. It's time, they're gone, TOD (time of death) needs to be called.