Hard Light Productions Forums
Off-Topic Discussion => General Discussion => Topic started by: Kosh on February 24, 2009, 04:30:29 am
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**** (http://www.cnbc.com/id/29353282)
American Insurance Group, the insurance giant that is 80-percent owned by the US government, is in discussions with the government to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in U.S. corporate history, CNBC has learned.
Sources close to the company [AIG 0.53 -0.01 (-1.85%) ] said the loss will be near $60 billion due to writedowns on a variety of assets including commercial real estate.
That massive loss is likely to spur downgrades in its insurance and credit ratings that will force AIG to raise collateral that it doesn't have.
AIG
In addition, if AIG's book value falls below a certain level, as it seems certain to do, it will trigger default in certain of its debt instruments, say people familiar with the situation
I wonder how many more billions of dollars in bailouts will go down the drain.
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HBOS recently announced £28 billion loss, the biggiest in UK history (IIRC). 'bet those heady days of billion pond/dollar profits seem a long way away now huh ?
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A lot of people are going to be very angry if any more businesses get bailed out. The Dems will have to call it something else. :[
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And yet, they still manage to purchase many T.V. advertising slots. :no:
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They were likely purchased ages ago.
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**** (http://www.cnbc.com/id/29353282)
American Insurance Group, the insurance giant that is 80-percent owned by the US government, is in discussions with the government to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in U.S. corporate history, CNBC has learned.
Sources close to the company [AIG 0.53 -0.01 (-1.85%) ] said the loss will be near $60 billion due to writedowns on a variety of assets including commercial real estate.
That massive loss is likely to spur downgrades in its insurance and credit ratings that will force AIG to raise collateral that it doesn't have.
AIG
In addition, if AIG's book value falls below a certain level, as it seems certain to do, it will trigger default in certain of its debt instruments, say people familiar with the situation
I wonder how many more billions of dollars in bailouts will go down the drain.
Well, what are we going to do, let the company vanish, causing thousands if not millions of people to lose their insurance? We're bailing out major banks and other institution because huge numbers of American citizens depend on them. We can't allow people's insurance of savings to be wiped out, regardless of the costs.
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I'm not totally against bailouts as long as they don't take the form of 'here, have some of the sheeples money', as long as the stipulations attached are enough to ensure that (a) This is protected against a repeat performance, and (b) That the public money is protected as well, i.e. either no tax raise, or, if a tax raise is required, then an equal drop to below the current level until matters are balanced out once the system has stabilised.
Personally, I'd call them 'Citizen Funded Loans', and leave no doubt who's money was being handed out, and I'd put a time limit on the management for improvement or else they face being replaced.
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AIG already got a bail-out, din't it?
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I'm not totally against bailouts as long as they don't take the form of 'here, have some of the sheeples money', as long as the stipulations attached are enough to ensure that (a) This is protected against a repeat performance, and (b) That the public money is protected as well, i.e. either no tax raise, or, if a tax raise is required, then an equal drop to below the current level until matters are balanced out once the system has stabilised.
Personally, I'd call them 'Citizen Funded Loans', and leave no doubt who's money was being handed out, and I'd put a time limit on the management for improvement or else they face being replaced.
They should worded better then bailout. But I am a optimist and I believe the economy will get better.
Always it a Cycle of up and downs.
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AIG already got a bail-out, din't it?
Good point, they got up to $85 Billion last September, judging by the fact they are still in trouble, I assume that has gone.
Yeah, in that case, Bailout alone may not be a good idea, I think it's going to take something more profound.
I'm not totally against bailouts as long as they don't take the form of 'here, have some of the sheeples money', as long as the stipulations attached are enough to ensure that (a) This is protected against a repeat performance, and (b) That the public money is protected as well, i.e. either no tax raise, or, if a tax raise is required, then an equal drop to below the current level until matters are balanced out once the system has stabilised.
Personally, I'd call them 'Citizen Funded Loans', and leave no doubt who's money was being handed out, and I'd put a time limit on the management for improvement or else they face being replaced.
They should worded better then bailout. But I am a optimist and I believe the economy will get better.
Always it a Cycle of up and downs.
Agreed, I do think things will improve, however, I don't think, or at least, I sincerely hope, that companies aren't expecting things to go back to the 'way they were', otherwise it will all happen over again.
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Companies given federal funds for a bailout should be required to give more detailed accounts of what they're doing with the money. I still think accepting federal funds should mean they can tell the companies certain things to do with it. I know that's a bold step though.
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I'm not totally against bailouts as long as they don't take the form of 'here, have some of the sheeples money', as long as the stipulations attached are enough to ensure that (a) This is protected against a repeat performance, and (b) That the public money is protected as well, i.e. either no tax raise, or, if a tax raise is required, then an equal drop to below the current level until matters are balanced out once the system has stabilised.
Personally, I'd call them 'Citizen Funded Loans', and leave no doubt who's money was being handed out, and I'd put a time limit on the management for improvement or else they face being replaced.
Regardless of how badly AIG ****s it up, their role in our economy means we have to haul their ass from the fire anyway or face worse consequences, even if some of these companies have to be outright nationalized, or at least their insurance policies, deposits, and/or other assets being distributed among healthier companies.
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In AIG's case I think the bailout was meant to stabilize them for a gradual closure or merger, otherwise they would have flooded the market with their bad assets and mortgages at once causing a quite a bit of damage. Unless the government changed their tune (which is certainly possible) it wasn't meant to get them back into the black.
In any case the entire situation is shameful. You know, in certain older civilized cultures, when men failed as entirely as they have, they would throw themselves on their swords.
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I really don't think a return to the era of sponging-houses and debtor's prison is a good idea. Especially since banking and insurance tycoons aren't the only people who get irretrievably buried in debt.
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In any case the entire situation is shameful. You know, in certain older civilized cultures, when men failed as entirely as they have, they would throw themselves on their swords.
Okonkwo hung himself.
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In any case the entire situation is shameful. You know, in certain older civilized cultures, when men failed as entirely as they have, they would throw themselves on their swords.
Unfortunately, I think they forgot to bring their swords.
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None of you had better be angry. (http://www.hard-light.net/forums/index.php/topic,61172.0.html)
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Everyone's angry, it's mankind's favourite emotion since it allow a wonderful mixture of judgementalism and self-righteousness all wrapped up in a neat little bundle ;)
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I really don't think a return to the era of sponging-houses and debtor's prison is a good idea. Especially since banking and insurance tycoons aren't the only people who get irretrievably buried in debt.
No, they get £600,000 a year pensions and bonuses. Which the government could have blocked, but somehow didn't "notice" they could untill it's too late..... :wtf:
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[wario]BWAHAHAHAHAHAHAAA!!![/wario]