Toro
Diamond Member
The bail out of AIG gives the Federal Government an 80% controlling Share of the company. This is a clear violation of the constitution, and it is bad economics. Throwing good money after bad is never a good idea.
Our government is not suppose to be able to spend tax payer dollars to benefit the share holders of a cooperation, and end up owning a Company.
yes I know it is not the first time, but that does not mean we should ignore it.
This is the action of a Democrat Congress. Ignore the law and the constitution, and spend more money we do not have, on a company that made poor decisions and was failing.
Economics 101 people, do not throw good money after bad.
This was a takeover of a company by the Federal Reserve and the Treasury. It has absolutely nothing to do with Congress.
It was probably necessary given the interconnectedness of the financial system and the credit derivatives swaps sold by AIG.
Frankly, I think the government got a hell of a deal. They're lending at LIBOR + 8.5% and get 80% of a company that was about to go under.