With a tactic reminicent of Venezuela instead of the U.S.A., our federal government effectively nationalized its largest insurance company, AIG. In exchange for an $85 billion bridge loan for 2 years with 8.5% interest, we the people got an 80% equity participation stake in a once public company.
We have no business doing this. I don't care what the implications to the financial markets might be. Like Chrysler before, now we are saying that AIG is too big to fail. Let me assure you, AIG has a tremendous amount of assets that could be liquidated rather quickly to fund any short-term liquidity problem.
They passed on Lehman, but pulled the trigger on AIG...what's the logic in that? Our federal government is stacked and controlled by to few "fat-cats", and it's well past time to clean house.
This is not representative of our free market economy. It is representative of a totalitarian economy.
Wednesday, September 17, 2008
Federal Government Nationalizes Insurance Company
Subscribe to:
Post Comments (Atom)
3 comments:
I believe the actual interest rate is 11.81%...even higher than 8.5%
Amazing. I'm glad that Congress has put the skids on the bailout plan until they can check out the devils in the details.
Thanks for the info.
Post a Comment