Oh oh.
“How do you know that the sky is falling?” asked Turkey Lurkey.
“I saw it with my eyes, I heard it with my ears, and a bit of it fell on my head,”
said Chicken Little.
Children’s fairy tale, The Sky Is Falling, adapted by Rick Walton.
Fed nears a deal to take over ailing AIG (MSNBC) Extraordinary move would give central bank 80% stake in insurance giant.
U.S. to Take Over AIG in $85 Billion Bailout; Central Banks Inject Cash as Credit Dries Up (Wall Street Journal)
Between the Hedges (Portfolio Manager’s commentary on investing and trading in the U.S. financial markets)
And us chickens on the periphery wonder what will happen to us when the largest nation crumbles?
Dolces last blog post..Addicted to (Bass) Nurse Myra
“How do you know that the sky is falling?â€
Well you could just wait for rating agencies like S&P, Moody’s and Fitch to tell you! I am sure they won’t lie about this matter.
Isn’t it?
No?
Eidurs last blog post..Blue H(away)ii
Seraphine: I’ve been to 3 bookstores looking for your magazine. Borders and Barnes & Noble don’t have it. Any suggestions?
PG-17 warning, this is going to be a very rude comment, parental guidance for children under 17 is advised due to foul language!
OK, so sometimes I borrow money, because I either have to – or when I am a greedy bastard, and just want to spend it on some cheap thrills, to satisfy the soul with some material goods. It happens, it happens to all of us.
But down the road I pay my debts back, sometimes with interest, sometimes not. In any case, I get even, no matter what. Those of you who gave me assets, are being reimbursed, I see to that.
Now what puzzles me is, why the fuck do I have to chip in for other greedy people who can’t estimate their own assets or their cash flow and bail them out?
I heard on the news today that the combined price tag the government payed for all these faltering institutions in the US during the last two months is adding up to be close to a trillion Dollars. That is a shit-load of money!
I can’t even imagine how hard the printing press is working to make up for all this, the press that prints dollars that come from nowhere.
This countries administration has gone insane, fucked the common person, screwed smaller businesses and continues to feed the “sharks”.
It is utterly disgusting that self interest has arisen to such a level.
I almost believed one day that the US is the longest so called existing Democracy. I was proven wrong. This country is run by a bunch of self-centered lunatics, greedy to the rim, smashing the little guy in the dirt wherever they can, fucking us all over with the help of scumbags like FOX TV who help to indoctrinate the message of a “incestuous salvation.”
You know, I do understand the logic of the government who bailed out IAG for 85 billion dollars. I get it. The collateral damage for all of us would have been worse if they hadn’t done so.
But is that a good excuse, just to make the appearance that therefore the economy is still stays viable?
I would say, let them drown. Let them suffocate on their schemes of greed. We, the people – don’t need no stinking government to bail out speculators and losers. Instead we need to stay upright and await a new dawn that is not only manufactured by greed.
Death to the sharks, not in the ocean but on land, where they don’t belong!
Zees last blog post..break
… oh jeah, I see the “TYPOS”
Zees last blog post..break
in a way i do agree with zee about the bailout. but at the same time if the government does not step in what other sort is mishaps might happen as result of these failing institutions.
savvymode sgs last blog post..How To Care for Handbags
I will trip to USA next year, so those news are not good for me and for my wallet…;)
a kiss
)
Kiras last blog post..Like Narciso’s?
Corporate restructuring… it’s what I do for a living. sigh….
novas last blog post..Rushing to the Good Parts
Wonderful comic – I think that ball of wax passed me on the way home.. followed by the whole enchilada.
susans last blog post..but no raymond scott tonight
The government now owns nearly 50% of all mortgages (Freddie & Fannie) 80% of your largest insurer (AIG) and mountainous piles of collaterised private debt, heralding a new era of creeping socialism. In the great depression it was a run on the bank by its depositors that caused the subsequent collapse but this time it’s a run on credit causing the collapse in credit markets sinking in a tidal wave of debt.
Certainly there are many economists who would agree with Zee and say these failed enterprises should be left to sort out their own problems as otherwise you risk creating a moral hazard to perpetuate that same risky behavior that lead to their demise in the first instance.
But I have some empathy for Dr Ben Bernanke and Henry Paulson’s latest move to provide an $85 Billion loan / equity investment in AIG. AIG’s underlying world wide insurance business are in relatively good shape but will be gobbled up for a pittance in the event of a panic driven liquidated fire sale. Their latest underwriting activities are all in good shape and adhere to regulated insurance solvency requirements capable of yielding good future returns.
It was only in the Holding company of AIG whose investments in securities in the sub prime market tanked the overall company. Hence a fire sale would yield worldwide panic amongst many policyholders and a hell of a lot less on those underlying sound assets that will now realize under an orderly sale over the next 12-18 months.
Best wishes
lindsaylobes last blog post..Precious Water
We survived the S&L scandal and bail out in the 80s. We’ll survive this.
But the corporate officers who received (I can’t make myself say “earned”) multi-million dollar salaries while getting them into this mess will pay back the money, right?
Udges last blog post..Consumerism
This is not a good morale: if you are greedy and make a lot of money, you will be bailed out. But if you’re just a regular person, the unemployment agency is down the hall on the right.
Ok, the funny thing here is there is no saving this economy. When we left the gold standard in ’70 or ’71, can’t remember exactly, we started on the road to ruin. This economy has been doomed from that point on. There is no saving it. The governments current obligations are estimated at around 32 trillion. Yep 32 TRILLION dollars. Hmmm…. lets ponder that for a bit. That equals about half the WORLDS total wealth. I’m sorry but there is no way back up from that kind of hole. This rotten system is coming down. Its only a matter of time. And what are the two morons up for president talking about doing about it? NOTHING. Hell they even want to increase spending. Yes lets just shove the economy that much harder over the edge of the cliff.
I need a bailout of a couple dollars, will the govt. bail me out.
Rass last blog post..The man