Well looks like the recession is realy hitting home AIG has posted the highest quarterly losses in corprate history 61.7 Billion Dollars that was for the 4th quarter of 2008 this is on top of the 37.7 Billion Dollar loss over the first nine months of 2008 So it looks like it is now up to Obamas teram to try and bail it out this time round there is talk of upping the 85 Billion aid package allready given to arround 150 Billion. Your views please gents and please do try not to blame Obama for something that was happening prior to his taking office, lets try to see if we can thing of ways to rescue the economy
We are told they are too important to let fail. But are they even salvageable? Who knows. A year ago they were trading at $52 now they are trading at 52 cents. I guess I would feel better about all these bank bailouts if I at least saw some public executions of some banking executives. Let's say 1 executive for each billion in money sent to them. That seems fair. And it looks like the Dowwill close under 7000. Another barrier broken. Not good.
Same over here Stu one of our largest banks posted losses in excess of 40 Billion dollars, German and French banks are suffering Iclandic banks well they basicly are bankrupt. A couple of the UK largest insurers have lost heavily on the stock market due to there involvment with AIG today. I wont even mention some of the smaller countries and how they are doing LOL man this realy is a world wide disaster
Although i agree it is terrible I must say it may end up in the end being a good thing for us. With the closure of large organizations it gives the average joe a chance to rise up and fill that void in some instances if they are dedicated and willing to work. Also it may just teach people a good solid lesson about credit and how/when to use it responsibly. Since were also probably going to have to rework things to avoid a repeat of this down the road why not take the time and correct problems that have lead to companies dumping pollutants around rivers or into the air. Turning off the hundreds of lights in towering skyscrapers that have no one in them at night. And maybe just maybe people will learn to appreciate what they have instead of always wanting more but thats probably a bit of a strech for humans right now
I heard a talk show guy the other day talking about how there are plenty of smaller banks and financial institutions that are healthy and fine and did not get caught up in all this stuff. Makes one wonder if it isn't better to let some of the larger (corrupt or just plain stupid?) banks fail and let the healthier medium or smaller (and more honest or smarter?) banks get bigger and fill in the voids. Who knows?
I wouldn't say this is off topic but not about AIG. This involves First Magnus - one of the first "biggies" to fall as it were. http://www.azcentral.com/arizonarep...s/2009/02/28/20090228biz-firstmagnus0228.html I'm sure some people being overpaid or spending lavish amounts on parties had nothing to do with this. I say this because my wife worked for them a few years ago. Instead of handing out a decent bonus to the employees for Christmas they had one HELL of a party. My wife and I attended the District one (covered four states) and was held in Chicago that year. I was required to wear a suit. Hell, I had to buy one! LOL My wife was required to wear a full length dress. Managers had to wear tuxes. The party was held at the Ritz Carlton. Not everyone spent the night but you could and we did. They got a deal on the rooms actually. Only about $200 per room and I figure at least 250 rooms were used by us. The band was a very well known Beatles tribute act. The Beatle brothers I believe. Food. Nothing fancy except prime rib, smoked salmon etc. The booze? I stuck with my free Heinekens but if you wanted something stronger I remember the vodka being Absolut. They showed a funny video about the mortgage industry which featured actual employees. Quite lengthy and well done. Wonder what that ran? This was only one of several district parties they held. Wonder how much they spent? I'm sure the big dogs all got great bonuses besides but how much would they have saved if they just gave little peeps (like my wife) a $100 bonus? We would have preferred that and a "pot luck" at the local office believe me. Nothing like watching a bunch of people really smooz and kiss butt until they smell of feces. Ewwwwww! This in mind it really makes it difficult to feel ANY pity for an institution like AIG. There does need to be some very strict rules and regulations if the taxpayer is to bail your dumb hiney out. Salary and bonus caps are fine in my book. Take it or leave it I say. Someone else can fill your shoes and quite possibly do it better given the opportunity.
The wretched excess is probably what kept them from choking on the smell as they kissed the behinds. I'd take $100 over going to a work party any day of the week. Of course, I might be a bit of a misanthrope but I'd still rather have an extra $100 in my pocket. And, I have absolutely no problem with the government imposing any rules on any employees of an institution taking bailout money. That probably comes as no surprise, though, after I mentioned the public execution clause that I would have attached to the bailout money.
I like the public execution thingy as long as it's pay per view, that would provide economic stimulus for the advertising, television and broadcasting industries
We were obviously posting at the same time Jack but as they say in the Guinness commercials. BRILLIANT!!!
At least they got those big fat bonuses before they were ousted last year. Another round of Martinis anyone?
Oh crikes blokes, no executions. That is just plain wrong. I am not in favour of the death penalty, and naythers should you bees. Remember, Gitmo? Well the Supreme Court ruled we canna detain the Al Qaida people there or use "enhanced" interrogation techniques on them. They said nothing about the Wall St. Bankers and corporate robber barons. No, no death penalty, just "enhanced" interrogation techniques, that is all.
Actually, 2 years ago I was involved in a traffic accident. My boat was hooked up to the truck and a buddy and I were off to the lake fishing. Stopped at a red light, by buddy jumped out to grab something out of the boat. He was standing at the trailer hitch, between the boat and my truck when the boat was rear ended by a commercial vehicle ( HEAVILY insured by AIG ) Broken back, punctured lung, ruptured this and that, he is finally about to settle. My wife is representing him. They are in negotiations with AIG and getting very worried about the settlement. It is life changing money and as you can imagine, they both are getting nervous, wondering if they should just take the offer as it stands now or keep playing poker with the AIG rep and law firm. Scary biz for sure.
Sorry to hear about your mate Jack, I hope that he is on the road to recovery now, unfortunatly though what you have just discriped is been played out all over the world. If AIG is allowed to fail just how many people will it effect not just in the US but world wide? the potential fall out is astronomical.
'Cuse me, aren't we already paying out the bum and through the nose for this lunacy to prevail? I will be damned if I pay to watch what I already paid for with the usurious taxation.
Good point, but the question is, will any amount of bailout for them or anybody else be enough? What will it take? Then if they are finally turned around, are they safe from failing ever again and then do we bail them out again? This is like trying to hold water with a sieve. The government's determined that the sieve will hold water if they just pour enough into it.
There was a report on ABC news last night about how small town one branch banks that have been in business for a long time are doing just fine. Their business model is built on the local community, and doesn't allow for outside loans etc. So they are reasonably well situated. I know as one of the banks whose National Banknotes I collect is still doing just fine after a 100+ years in business in a small Missouri town, a one branch bank that my ancestors had money in.
It doesn't have to necessarily be a one branch bank but LOCAL is the key. I trust one bank around here. They now have branches in three counties but their policies and customer satisfaction are tops. Ask anyone that banks in this area. I might actually set foot in the local "main" branch once a month. Still, most of the tellers know me and take great care of me. If I should go to another branch they look up my account number, I give them ID and it's an easy transaction. Conversely, my boss has accounts in all three banks within walking distance of the store. Chase is BY FAR the worst. If he sends me down there for store business I am ALWAYS greeeted with a welcome to Chase do you want to open an account etc. They know me and know the answer. I don't fault them for doing their jobs but EVERYONE is just a number and they want more. Compare the fees and customer satisfaction and it's a no brainer. The "local" bank blows Chase out of the water. Local business, local people, locally run and over 100 years in the business as well as family owned. Their slogan is "not for sale". Gotta love that.
