Government Takeover Not Just A Bail-out!!
By gwoman2
@gwoman2 (710)
United States
September 17, 2008 1:06pm CST
Tuesday the Federal Reserve rescues AIG with an 85 Billion $ injection of taxpayer monies--the government gets a 79.9% stake in one of the worlds largest insurers and the right to remove senior management.
This is the 2nd time this month that Feds distribute our tax $ to bail out a private financial company. September 7th marked the first event where a similar move was made to bail out Fannie Mae and Freddie Mac. In a statement by a Fed: "This could lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance"...What is next myLotters? Can you predict?
1 response
@egdcltd (12059)
•
17 Sep 08
The downside is a commercial business is now being managed by an organization that has never managed to run a commercial business successfully, a government. Not a happy thought. Okay, the previous people didn't do too good a job either, but governments tend to do even worse.
In the UK, someone from one of the biggest mortgage lenders was quoted as saying that the credit crunch may well last for another year and a half. My thought on that was he was being overly optimistic.
