AIG Bailout: Is It Working?

U.S. government announces AIG bailout plan

In a bid to save financial markets and the economy from further turmoil, the U.S. government agreed Tuesday to provide an $85 billion US emergency loan to rescue the huge insurer AIG.

These steps are taken in the interest of promoting stability in financial markets and limiting damage to the broader economy.

Michael Smith of NY @ Nov 07, 2008 04:44:39 AM

We Dont Deserve it dividend,,,

What would the "We Deserve It Dividend" do to the value of our dollar? If one day in the near future every US adult instantly had $425,000 - we would be in the same position we are in now, just the dollar would be worth much less.

Example: Put 10 starving people in a room and put $20 in each person's pocket. If a salesman walks in with two apples, the price for one of those apples would be $21.

Not to mention, more than half of those adults would not return to work. What would happen then?

Jay Poindexter of TX @ Oct 10, 2008 09:01:03 AM

nice math skills

85 billion (85,000,000,000) divided by 200 million (200,000,000) = 425

FOUR HUNDRED AND TWENTY FIVE is a lot different than 425 billion.

&eye of MA @ Sep 29, 2008 17:29:35 PM

Short

The US uses a short scale, so 1,000,000,000 is one billion on the short scale and one-thousand million on the long scale. Similarly, 1,000,000,000,000 is one billion on the long scale but is one trillion on the short scale.

Just to let everyone know, See http://en.wikipedia.org/wiki/Long_and_short_scales

Counsel of NC @ Sep 29, 2008 14:17:17 PM

New Math

Ah....

Let me see...Let me remember that "new math" that might be what got the CEOs and the Board of Directors in trouble in the first place...

85,000,000,000 (eighty-five billion) divided by 220,000,000(two hundred and twenty million). Those numbers are two decimal places apart and are separated by about a multiple of 4 from each other. So...

If my math serves me, each citizan over 18 would get...about 386 bucks...and change. Perhaps the error was that your calculator does not have enough space to display the billions and you added zeros. I'm not sure...

Who did you work for....Wachovia? :)

Counsel of NC @ Sep 29, 2008 14:13:05 PM

Great Idea

Sorry, the last post listed 85,000,000,000, that's only 85 million. The correct figure should be 85,000,000,000,000.00 divided by 200,000,000 = 425,000.00.

Robert White of CA @ Sep 26, 2008 17:21:38 PM

Great Idea

An idea worth considering. I'm against the $85 BILLION bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a "We Deserve It" dividend.

To make the math simple, let's assume there are 200,000,000 bona fide U.S. citizens, aged 18+. Our population is about 301 million counting every man, woman and child so, 200,000,000 might be a fair stab at adults 18 and up.

Now, divide 200 million, 18+ adults into $85 billion - that equals $425,000.00 each! Yes, my plan is to give that $425,000 to every adult as a "We Deserve It" dividend. Of course, it would NOT be tax-free. So, let's assume a tax rate of 30%. Everyone would pay $127,500.00 in taxes. That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife would have $595,000.00! What would you do with $297,500.00 to $595,000.00?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads.

Put away money for college - it'll really be there.

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs.

Invest in the market - capital drives growth.

Pay for your parent's medical insurance - health care improves.

Enable deadbeat parents to come clean - or else.

Remember this is for every adult U.S. citizen, 18 and older (including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back) and of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth, let's really do it! Instead of trickling out a puny $1,000.00 "economic incentive". If we're going to do an $85 billion bailout, let's bail out every adult U.S. citizen!

As for AIG - liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. We deserve the money and AIG doesn't.

Sure it's a crazy idea, but can you imagine the coast-to-coast block party?!

How do you spell Economic Boom? W-e D-e-s-e-r-v-e I-t D-i-v-i-d-e-n-d! I trust my fellow adult Americans to know how to use the $85 Billion "We Deserve It" dividend more than do the geniuses' at AIG or in Washington, D.C. And remember, my plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam. Good idea? I think so.

Robert White of CA @ Sep 26, 2008 16:59:52 PM