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Mercnbeth -> RE: DJ industrials pass 10,000 for 1st time in a year (10/14/2009 4:00:53 PM)
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quote:
ORIGINAL: tazzygirl
Allowing AIG, even in name, to go under would have resulted in wide spread panic. AIG isnt just an american company, its tentacles spread global... so would the fall out.
Therein exposes our fundamental difference Tazzy; you believe the rhetoric used by Presidents Bush and Obama to gain public support for bail out tax money going to their corporate sponsors. Me, I take the pragmatic approach, consider non tax payer alternatives and don't care about appearance. Just because I may be able to exploit the condition and benefit from it doesn't mean I support it philosophically. Hell, I even took a flier and bought some penny stock on a company formerly know as GM. I figure if they close more plants and layoff more people someone may just buy the shell next year and I will double my money. The concept is completely wrong from an altruistic perspective; but similar to this 'positive' stock market result who else but pragmatic investors like me benefit from this "DJ over 10k" news? You want to know a secret about the market - when a company announces large layoffs and plant closings - buy the stock. They're value goes up when they cut overhead.
Meanwhile these bailouts took money from other projects and services. Worse it's condemned the current Administration to bear the burden of continuing to bleed cash because now precedent is set. Until the mandate from Washington changes and failures are allowed to fail, the expectation of more bailouts keeps the same decision makers in place making the same decisions. They aren't creating new jobs they're cutting employees, increasing 'service fees', and tightening up lending criteria. Greater unemployment mean less tax revenue, at the local, State, and Federal level; coming at a time when the need for services increase. You see that as a good thing somehow, someway, having an ultimate positive outcome?
Exactly who would have panicked if AIG failed other than the executives and shareholders? Many global companies have come and gone over the years. There is a life expectancy for corporations as well as individuals. Company's die because they, their product, or their management become obsolete. The impact of AIG's demise would have been no different than any coming previously.
Taking your point of the global nature of AIG was was it incumbent on the USA to be the only source of bail out?
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