the biggest insurer in the world lost billions

@winterose (39918)
Canada
March 2, 2009 7:07pm CST
the biggest insurer in the world, AIG lost over $62 billions dollars in the last four months this is getting out of hand, this is really awful,these companies are losing right and left and the economy is terrible. Do you think it is going to get worse before it gets better? Do you think we will fall into a depression as bad as the great depression in the 1930's where big business people were jumping out of windows committing suicide? Do you think the government should help bail them out?
6 people like this
18 responses
@Vladilyich1 (1454)
• Canada
3 Mar 09
It will get a lot worse before it turns around. AIG is a real piece of work. They already got one bailout and are begging for more. The $62-biooiion they lost was AFTER the first bailout. The rest of the world is also begging b ecause AIG is the largest moltinational in the world. I think the U.S. Government needs to cut their losses and cut insurance companies loose.
2 people like this
@winterose (39918)
• Canada
4 Mar 09
the trouble is if aig good or bad falls, usa and all of western hemisphere is in for a severe depression, they are just too big a company to go under.
1 person likes this
• Canada
4 Mar 09
I've heard a lot "too big to let fail" recently and I really don't believe it. All companies started out small and succeeded because they had a better product or idea. The ones going down the toilet now are the companies that just got greedy.
@Lakota12 (42684)
• United States
3 Mar 09
It is getting out of hand and how in the world can they loose that much money they aint taking care of it thts for sure and if government does again that means the tax payers have to pay it back in the long run!
2 people like this
@winterose (39918)
• Canada
4 Mar 09
yes one way or the other the taxpayers will pay for it.
1 person likes this
@Lakota12 (42684)
• United States
4 Mar 09
yup
• Philippines
3 Mar 09
This global recession may have gone worse the past few months but I believe that in the last quarter of this month, this will start to be okey. that's what some of the financial analyst say and I agree with them. People nowadays are knowledgable on what to do next.
@winterose (39918)
• Canada
4 Mar 09
I certainly hope so.
1 person likes this
@albert2412 (1782)
• United States
3 Mar 09
I do not think that giving out all this money to help big businesses is going to help our economy. A lot of company big shots have botten fat bonuses from our stimulus money and the economy has only gotten worse. If we are going to help the economy, we need to find ways to help the average person on the street, the people who are struggling to find a job and to pay the bills.
@winterose (39918)
• Canada
4 Mar 09
you are right about the fat cats on top, but if the companies go under so do the average guys because they lose their jobs and there will be no work, so it really is a catch 22 situation.
1 person likes this
@jep_toyo (1607)
• Philippines
3 Mar 09
Its not over yet. I think we will see companies closing and we are only at the beginning of this turmoil.
2 people like this
@winterose (39918)
• Canada
4 Mar 09
it could be just as you say
1 person likes this
@Aingealicia (1906)
• United States
3 Mar 09
No the Government should not bail them out. I have TARP fund reports that support this. There is no reason for us to bail out the big 3 or any of the Banks, we should have that money building schools, creating jobs, and giving back education to the people, not the people on the hill or Wally world when it plumits. Ainge
1 person likes this
• United States
3 Mar 09
Oh yes, no one is jumping yet but I have not been down to Wall Street in the last few weeks.
1 person likes this
@winterose (39918)
• Canada
3 Mar 09
I think the government is in a bind of these companies really do go down as seen with the great depression when wall street crashed, the country will go down with it.
• United States
3 Mar 09
Rose, Yes, if the US fails, it will affect thousands of millions of people world wide. We are interconnected from here to timbucktoo. When this industry collapses, and it will, we will just have to rebuild it stronger. Learn from our mistakes and pray that we learn from the past lest we are doomed to repeat it again. Stock up on food that won't spoil and water. Ainge
@Darkwing (21588)
5 Mar 09
I think, bearing in mind another of your discussions, that relief funds would be better used to help combat the economical crisis within one's own country. The fact is, that all government relief funds are built on taxes collected from that particular country's population, so I feel, it should be given back in times of economic crises. Brightest Blessings, my friend.
@winterose (39918)
• Canada
6 Mar 09
I am finding it hard in these trying times to over so much relief to other countries, imagine if that same money was put in to the american economy in combination with the efforts that have already been done.
@Darkwing (21588)
6 Mar 09
Yes, and I think it should be in times of crisis such as we're all going through.
@pergammano (7755)
• Canada
4 Mar 09
NO! NO! NO! STOP the bail outs! Let the cream rise to the top! Yes...the depression is going to get a lot worse...before we shake ourselves out of the ashes of the firestorm that one & all has contributed to! Their are companies, businesses that are healthy during this time, like the Canadian banks....or how about Coke posting a 3 billion gain in the last quarter? All the top heavy (CEO) with million dollar earnings will have to re-organize, re-shuffle and stop biting the hand that feeds them! It's been a gravy-train for tooooooo long! Cheers!
1 person likes this
@winterose (39918)
• Canada
5 Mar 09
canadian banks are public not private corporations like in the states, a totally different system all together,
1 person likes this
• Canada
5 Mar 09
I am fully aware of the difference in public & private systems! That was not the issue, as I understood it...and my point was, some systems are surviving, quite well...whilst others are falling on their faces! Shouldn't a few lessons be learnt here! If your garden is NOT growing, same eveything (mostly) as your neighbours....wouldn't you ask for a lesson or two from him as to why his is flourishing?
@scheng1 (24742)
• Singapore
3 Mar 09
Actually there is another angle that nobody really considers carefully. Think about it, money doesn't just disappear into the air. When someone loses money, another person will gain. So AIG lost over $62 billions dollars, where had all the money gone? As long as whoever holds cash and willing to invest again, the economy will recover soon
1 person likes this
@winterose (39918)
• Canada
3 Mar 09
money is a borrowed commodity, many economics says it doesn;t really exist like gold exists, but money is just something representing a something and in situations like this the dollar you see in your hand has a value of a few cents because of borrowing money that did not exist, it is very complicated.
@scheng1 (24742)
• Singapore
3 Mar 09
Currency is a borrowed commodity, but money doesn't just disappear, it has to go somewhere. At least we know part of it goes into the pocket of the bank executives. They really suck the economy dry with their big salary and big bonus. I guess part of it goes into Middle East, there's a time when the oil price reached heaven, so those folks in Middle East must be hoarding a lot of money now.
@bunnybon7 (37425)
• Holiday, Florida
28 Mar 09
im not sure they/we should as behind it all we are the government that puts money in for this. everyone is going down with money, but big companies dont see it until to late. they dont care to tighten their belts as the saying goes stop giving out big bonuses, etc.everyone else tightened up with money. some people and companies need to learn how.
@winterose (39918)
• Canada
31 Mar 09
I totally agree with you
@agrim94 (3811)
• India
27 Mar 09
Aig lost billions and is being given billions of tax payers money but i think it is going to go waste unless they mend themselves. They gave billions away in debts knowing fully well it is very risky debt but they still did and whole world have to pay for it. So unless they stop financing bad loans and are very careful this would happen again.
1 person likes this
@winterose (39918)
• Canada
27 Mar 09
Yes I agree
@bdugas (3581)
• United States
3 Mar 09
No I dont think that any more money should be given to AIG, aren't they the ones that when given their first bailout took their teams to Calif to a special holiday stay at a fancy health club, they was not made to pay back the money that they spent on this holiday to Calif. This to me was a slap in the face to the american people that is paying for these bailouts. I do believe that we will go into a depression as bad, if not worst than the last one. I think that is where he is leading us and he will not stop. I have watched Fox News lately and not one person that has been on there has anything they see good coming out of this package he has signed and it is full of earmarks, that he said you would not find in any bills that he passes. I think when we expect that the government is interested in helping that is when we get into trouble, I don't believe the government is in this to help the people, but only to do what suits them at the time, and their ideas will take us down.
1 person likes this
@winterose (39918)
• Canada
3 Mar 09
you bring up some excellent points, those bankers and insurers wasting the money they should all be put in jail.
@barehugs (8986)
• Canada
3 Mar 09
Canada's banking system is #1 in the world. Not one of Canada's banks has lost money and none have had to be bailed out. In fact most of them are still making money in this time of financial crises. Canadians should be proud of their Financial System, and the world should be taking Notes, as well.
1 person likes this
@winterose (39918)
• Canada
3 Mar 09
our banks here in canada are not private like the usa they are public meaning they are owned by the government. If they go down god lord there is no canada anymore, but trust me they get pretty heavily weighed down too.
@chertsy (3804)
• United States
3 Mar 09
I actually believe it will get worse before it gets better. I think every single person in America has to hit bottom or close to it before things gets better. This economy stinks, and I'm reading that things are going to be taxed even more. People won't be able to afford a loaf of bread at the rate our economy is going. I'm amazed they are just calling it a recession, it feels more like a depression, because each day more and more people are having to go to food banks and the unemployment lines. I pray that people don't jump out of windows over this, because like everything it will get better. This will make us stronger. With this bail out thing, I was very upset under Bush, that these companies took the bail out and still kept going like nothing was wrong. Finally with Obama, there is guide lines and rules that has to be met. Plus, the ones getting the money has to show every little detail of where the money is going. I honestly don't think people that went out and got a house knowingly that they wouldn't be able to afford the payments should get help. When we got our home, we were stupid, I admit. First time buyer, easily talked into anything. Well, after 2 years, we learned we got sucked into what a lot of Americans did. Only thing like a few Americans, we were able to refinance and get the right loan we needed. We didn't buy a house in the get go that we couldn't afford. A lot of these companies need to find ways of dealing with this problem than asking for help. Plus I think the American tax payer should have say so on how we are going to be paying for this bail out, than leaving us in the dark. Because this is a problem that my great grandchildren are going to be paying for. Ugh, just talking about this is depressing. I wonder if clearing everyone's debt, getting rid of credit cards, not being able to buy on credit, unless it's required to get a loan like home or car would this solve the problem. Bringing our troops home would solve a lot of our money issues. Especially with all those private companies over there for no reasons at all.
1 person likes this
@winterose (39918)
• Canada
3 Mar 09
wow very intelligent answer, I think getting rid of credit cards is a big first step myself.
• United States
3 Mar 09
AIG should go banctrupt like all failing businesses. there is a reason why they are losing money. all these big companies are paying these CEOs big money for nothing. in 1965 CEOs made 24 times what the average worker made. in 1995 CEOs made 60 times what the average worker made. now CEOs make 431 times what the average worker make. what needs to happen is these companies that can't keep their CEOs hands out of the cookie jar should go under and let another company start where they left off. it would keep these companies in check, instead of bailing them all out.
1 person likes this
@winterose (39918)
• Canada
3 Mar 09
they are losing money because they insured sub prime home mortgages, that means they insured people that couldn't get a regular mortage so they could have a home and the people didn't pay the mortgage lost their homes and aig is in trouble for it now, they lost their money
@Ritchelle (3797)
• Philippines
3 Mar 09
i'm from the philippines and i have no idea about AIG but you know, there is one thing i'm sure of. the moment we all feel it's only worse it's still bound to get worst. then that's the time when better is bound to take its course. it's cyclical. everything in this world is. rich, manipulative people who are benefitting now cannot do this for a long time. they're bound to reverse things or they, themselves, would suffer one way or another. besides, fate has a way of correcting things. about the great depression, yes, maybe...jumping out of windows? i'm not really sure... i think if many are feeling the brunt of economic depression governments around the world is one of them. what governments should do is not spend anymore on what it doesn't really have. they should try to find ways to correct things that had been wrong for a long time that they chose to ignore. that's why we're all suffering.
1 person likes this
@winterose (39918)
• Canada
3 Mar 09
thank you so much for you view my friend.
• Canada
3 Mar 09
It's hard to say. The whole thing has gotten so crazy, I'm not sure anymore. I got something in the mail from AIG the other day, wanting my husband and I to sign on with them. We both agreed that they must be kidding. Why would we want to do business with a company that's going down the drain?
1 person likes this
@winterose (39918)
• Canada
3 Mar 09
they lost big money insuring all the sub prime homes that now went under, it is really scarry the largest insurer in the world going down like that.
@ladym33 (11008)
• United States
28 Mar 09
The even sadder thing about this is instead of firing those responsible for not running the company properly they gave them huge bonuses. Paid for by the government, which is actually paid by all of us who pay taxes. All of this nonsense has got to stop an someone has got to come up with some real solutions or we are all going to be in big trouble.