Where to go for Political chatter and gossip
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American International Group, rescued twice last year by the U.S. government, is asking for more aid and bracing for a fourth-quarter loss of roughly $60 billion, a source familiar with the matter said. It would be the biggest loss in a quarter in corporate history.
The $60 billion would exceed Time Warner's $54 billion single-quarter loss in 2002 and dwarf the $24.5 billion loss AIG posted in the third quarter, when the government increased its rescue package for the insurer to about $150 billion.
http://www.reuters.com/article/ousiv/id ... LT20090224
They should be allowed to fail, sucks for the workers, but if we keep bailing out corporations we may as well nationalise them and keep the workers employed....shouldn't be rewarded for failure on that level, when they were reaping in the profits, where did that money go (can you spell Nassau?), so I have no sympathy for the shareholders anymore, they are the ones that continue to reward CEO's with disgusting bonuses that the tax payers are now picking up, if that had of been me or you we would be fired and hauled out by security. It's funny but America is all about capitalism, until they need to file for protection, make fun of our social benefits, but from where I sit, our banking system is still considered ok to put money into, not the best as we are losing jobs as well, but not as hard as the US.What I can see happening and the Americans are not going to be happy, but there will be a need to increase your income tax payments to the government if you want to continue bailing out corporate welfare types.
Sink or swim, it's what the wall street is all about, this is a huge correction that is going to take approx 18mths to come around, but at least the fakes/frauds/crooks/ and just plain idiot CEO's will have either been jailed/killed/or left town and the regulators will tighten the rules and banks will rebound...
bailing out companies is in opposition to the very concept and nature of capitalism...
bad businesses and businesses suffering from poor management should simply be allowed to die...and an extra benefit would be that you will see a lot less companies hiring those CEO's who find themselves out of work because of bad management...who would hire them after they drove one business into the ground.
Gawd I ***HATE*** having to take the liberal standpoint...I EFFING HATE IT...but here goes:
When a big business crashes, the little guy suffers. The wigs at the big business bail out with their gazillion dollar parachutes and wind up richer than ever before from selling off the assets of the husk of what used to be the mighty corporation. Meanwhile the hourly grunts suffer - they've lost their jobs already, and their retirement funds, and any benefits they otherwise had, and are thrown out into the world of having to find a new job.
If One corporation does this, it's no big thing - the workforce is always in short supply enough to handle an extra 5000 jobless or so and get 'em reemployed at something else. If LOTS of corporations do this, we're fuxored and it's the 1930's all over again.
Yes, I fully agree that these corporate executives need to be HUNG UP BY THEIR TESTICLES for their mismanagement and piss poor business skills. I also fully agree that spending the dough to buy 'em off for a few years more might stem the tide a bit (much akin to stemming the tide with a teaspoon I'm afraid). Fact of the matter is that we can't fry the execs, that's up to their stockholders (who're all selling crazymad and hunting for bomb shelters right now).
So that leaves one alternative - government steps in as a MONSTER customer and says "Here's a trillion dollars for nothing. Keep your employees working." What they really mean is "Here is a trillion dollars to save our economy. We hope your shareholders have sense enough to fry your sorry arses before you drive your corporations broke again."
Am I happy about the whole mess? Hell no. Is my kid happy? Nope, she's mad as hell, and being only 18 she's barely even aware how this shiite works to begin with. Will my grandkids be happy? Probably not, they'll still be paying the interest on this debt, as will their grandkids.
Personally I think we should hire up a nice squad of mercenaries, hand 'em all thompson submachine guns, and let 'em go mow the beggars down Chicago gangland style, then spend a few thousand bucks cleaning up the mess, and a little more hiring up more savvy schmucks to take their places - under pains of death if they fail. Might give 'em incentive to do their effin jobs correctly eh? Ain't that liberal sounding of me?
The one thing a customer service specialist can never teach is 'being nice.'
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