Why AIG Is Devouring the Bailout Fund

no more money in the vaults

The vaults have been empty for a long time. Money is really just a promise that U.S. taxpayers will keep on paying taxes. That promise gets broken when U.S. taxpayers no longer earn money on which to pay taxes, and instead start needing money. This is the real melt-down. More fiat money can be printed...it will never 'run out' in that sense. What will happen is that the fiat money will become worthless because so few people will be left who can pay taxes. Until then, tax collection will be ramped up as much as possible on those who still have the ability to pay, and of course this will further deplete the buying power that is needed for 'recovery'. But does anyone really want to recover a system that is doomed because only enough fiat money is printed to make loans, but nothing is printed to pay back the interest on the loans. Do we want to recover a system that is designed to lead to bankruptcy because there simply are not enough notes to pay back all the interest owed. A close look at the privately owned Federal Reserve will help your bide time while you are sleepless in New York, Houston, etc... Some suggest that we simply stop using money and let the whole system collapse from it's own criminal weight. It's the old "ignore the problem and it will go away" method. This will happen when most of the jobs are gone and there will be no other option. Sleepless and jobless people all over the world are already scheming up all sorts of substitutes for money. Some of us are even experimenting with simply giving away our products and services and trusting in the karmic flow of justice to compensate us. Hey, maybe this is the new world order that we need. The French revolutionaries, in establishing their new government, simply declared that they refuse to honor the debts of the old government. I can promise you that with ideas like this, I will never be found on Obama's cabinet.

S. Berard of LA @ Feb 24, 2009 04:31:41 AM

Aig needs to fail...

I agree, AIG needs to fail.... if the government continues to "try" to bailout AIG and other companies they are only hurting and not helping the people in America. These executives need a definite change of heart in how they do business. Its sad but all of this really needs to happen, to have America look at themselves and begin to take PERSONAL RESPONSIBILITY over themselves and how they live. All of this is a serious wake up call to everyone here in America saying we can't continue pointing the finger at someone else over our own wrong actions/decisions.

Jennifer of TX @ Dec 05, 2008 16:04:10 PM

Realize this

AIG will be fired by so many customers, they will never recover. Obviously, AIG leadership has friends in high places. I know I'll never do business with them again.

We are throwing the last of our good money at bad, disaster upon disaster, upon disaster lies wait around every corner.

Once America figures out that you don't spend your way into an economic recovery, and that it will take hard work, determination and getting by with next to nothing, only then will the economy recover.

C of WI @ Nov 17, 2008 12:00:18 PM

AIG and bailout

Let AIG go under. Then the government can step in and take complete ownership of all the assets.

Any executive pay should be disallowed. It hasn't been earned. Only the smallest shareholders should be reimbursed. Those that already have enough assets to live off of can be ignored when distributing what is left of AIG

The good ol' boy network is incompetent. This is a time of war and the good ol' boys have compromised this country. Send them to real prisons.

To hell with these greedy, incompetent, traitors to America.

And to hell with you servant boys of the press.

This is one veteran that believes these people have sold out America due to their arrogance and incompetence.

Steve W of NC @ Nov 13, 2008 12:25:51 PM

Too late for AIG

I seriously agree with the economists that AIG is broke, and we're lending money to a dead company. It won't be pretty but we need to let the economic nature take it's course with AIG and all those who will follow. The economy wasn't designed for "bailouts." We never should have started them and nor should we continue. The natural course should be allowed to persevere! We're only making things worse instead of better; we're delaying the inevitable. We're basically giving money we don't even have; the deficit is horrid and getting worse. We made it through the great depression, we'll make it through this one - it's not pretty but it's necessary...

Blitzen of NV @ Nov 12, 2008 13:39:38 PM

CORPORATE SOCIALISM

IT SEEMS THAT THE GOAL OF CAPITALISM IS NO LONGER TO MAXIMIZE PROFITS BUT RATHER TO BECOME "TOO BIG TO FAIL".

TIM ASHMORE of TX @ Nov 11, 2008 21:27:04 PM

AIG

Get this - I have 1st hand knowledge of AIG spending tons of $ to redecorate their offices. They have ordered 15+ truck loads of custom ordered Herman Miller office furniture. The article talks about AIG needing to liquidation some of their assets, but no one can get loads to buy their stuff. WRONG! Their spending our hard earned $ on brand new custom office furniture. 10-21-08 "I just wanted to let you know - another 3 truckloads nose to tail on 53 footers for AIG" 10-27-08 "4 more trailers of aig." 11-11-08 "3 more trailers of AIG again today!" I wonder if the gov knows how they are spending their bail out $?

of MI @ Nov 11, 2008 16:19:30 PM

AIG is run by crooks

I am sure everyone knows this, but unfortunately I just realized it, being in Act 91 right now on my home. AIG purchased many, many, many subprime loans. My husband has been out of work now for a while and we just cannot find full time work here in Philadelphia -- trust me we're trying as we really don't want to lose out home and move our kids out of their school district (our kids are in high school).

I was so excited when I heard about the Fanny & Freddie news conference, called my mortgage company to ask if we were owned by them, and they pleasantly (kind of creepy) told me "no, AIG owns your mortgage...they bought up a large amount of subprime...oh, I mean sub-ccompanies...so ultimately AIG owns your mortgage".

I am 43 years old, I have worked since I was 14 years old, and as far as I am concerned enough of my tax money has now gone to AIG that I figure my mortgage is paid off...some how I don't think they're gonna buy that, though.

Pam of PA @ Nov 11, 2008 14:33:45 PM