AIG nationalized

Funny thing when most blog entries are historic events. Here it is, the nationalization of the largest insurance company AIG.

The deal is a 85B injection of capital that pays hefty premiums and nets the govt most of the equity. Again this could turn out to be pure profit for the taxpayers. Or not.

I am actually pretty positive about this move. Even if the market will not recognize it immediately (talk of an incoming crash at roubini) I think this will be seen as a turnaround point.

I wish I was a Trillionaire right now and I could go shopping like the government. Is that CDS fresh? You sure? put me 2B of it! Oh and that MBS over there, was it frozen? Oh the govt has already reserved it! Too bad.

Long live the United States Socialist Republic (US-SR).

Comments

Andrew Meyer said…
Marc,

I think I prefer "The Peoples Republic of the United States." It has more of an Ayn Rand feel to it.

With the AIG life line, Hank Paulson reveled his investment banking roots. If he makes a couple more deals like that, maybe we can support a couple more wars.

Interesting point I was reminded of. Fannie Mae and Freddie Mac were actually US Gov institutions until they were IPO'd under Lyndon Johnson. Why did he do it? The funds were used to pay for the Vietnam War.

I wonder in John McCain'll allude to that symmetry?

Andy
September 17, 2008 at 4:14:00 AM PDT
Daniel Brum said…
Cramer is hopping mad about the shorts he blames for the demise of some of the stock price drops http://www.cnbc.com/id/15840232?video=858359962&play=1
September 17, 2008 at 8:17:00 AM PDT
Unknown said…
This comment has been removed by the author.
September 17, 2008 at 10:10:00 AM PDT
Andrei said…
"Long live the United States Socialist Republic (US-SR)". Marc, you used to live in Georgia, right? That makes you a former resident of Soviet Socialist Republic of Georgia :)
September 17, 2008 at 11:42:00 AM PDT
Selling Free Software said…
Personally, I think things are just going to get worse. Check out this basic explanation of the Depression of 1929. Looks very familiar. http://en.wikipedia.org/wiki/Great_Depression#Causes
September 17, 2008 at 4:17:00 PM PDT
pcleddy said…
Hey Fleury,

Write me at pcleddy at gmail, if you please, offline.

Danke,
Leddhead
September 17, 2008 at 10:38:00 PM PDT
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