After this chaotic weekend, it looks like AIG will survive. The Fed and the Treasury have agreed to give them an 85 billion dollar loan, while taking over an 80% stake in the company. I don’t really know how this will turn out in the end, but for now, it seems like it was the right thing for them to do. Had they not bailed them out, it seemed like there would be utter chaos. It was already pretty chaotic when Indymac went bankrupt down here, I can’t even imagine what would happen if one of the largest insurance companies in the world actually filed for chapter 11. Hopefully it’ll all work out in the end, and maybe trigger a turn around in our economy.
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If AIG filed bankrupt it would not be good. But if they go though this money and it happens again it will not be pretty. Then the feds would be out this money, which will come down on us. The feds will make their money back, at our cost. Our public transportation in pittsburgh was about to go bankrupt, till the feds gave money (only one year ago) Now they are going to be bankrupt again and striking. Right now half our city dont have electric or water. Everything is down because of the high winds on sunday. Mine went back on Yesterday around 10pm close to 3 days. Still alot of people dont have elctric or water (half the city). The city called it in. The feds will not help untill monday.
My co-worker’s mom is an AIG CEO, and she literally called him and said, “your inheritance is gone”. LOL.
aw man! If the biggest insurance company were to crash it would be like the end of days. Everyone would be in panic; Not cool.
Tiffany, you too….I blogged about Cincinnati’s blackout on my site (hover over my name if you want to read it)….
Yeah, the economy is pretty scary. I agree with you, Sung, it was probably better for the feds to bail them out. But just like a household can’t maintain a debt lifestyle forever, the government can’t either. For individuals, there’s something to be said for living simply…
This just goes to show how truly unstable the economy is. And that’s a scary thing. It doesn’t matter if you’re middle class or upper class, it affects us all the same.
So maybe AIG will be able to turn things around with this second chance; if not… I don’t even want to think of the negative aspect of it.
Grumble… dame it! Just because my government Australia) and other huge multinationals had too much to lose did AIG get their butt saved by the bell. Would be an interesting world if they where made to cop the consequences of poor or bad management nothing against your co-worker’s mum Lenora.
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