Fyi: Wamu

[Banko]

News this morning reported Washington Mutual is entertaining buyers. The two names that came up were Citi and Wells Fargo. Just thought I would share what I heard. Thanks

[AngelinaCatHub]

Thank you. What is your opinion about us purchasing AIG? As a tax payer, I resent not being informed that my money was again, going to reward incompetent or crooked management as they take their 'golden parachutes" and retire. Seems like some of our government members have a bit of their own fingers in the pot as well.

[magyar123]

What I'm afraid of is that all those insurance companies within the AIG system will now increase their insurance premiums to help "big daddy" repay.

[AngelinaCatHub]

What I'm afraid of is that all those insurance companies within the AIG system will now increase their insurance premiums to help "big daddy" repay.

Would not surprise me. Have you ever heard of them going down in cost? In a free economy, you are free to sink or swim. If they choose to sink I say, let them no matter how big they are. The 'shake out' will be those who pick up the pieces and swim. I see a trend in this Country to bail out big companies (except all those gas and fuel companies, let's just Nationalize them)[said in sarcasm]. Those companies who are buying up the failures, are doing something right to be able to afford them. Example B of A purchasing Merrill Lynch. 'Hub

[Banko]

Those companies who are buying up the failures, are doing something right to be able to afford them. Example B of A purchasing Merrill Lynch. 'Hub[/QUOTE]

[Mi Bankruptcy]

Would not surprise me. Have you ever heard of them going down in cost? In a free economy, you are free to sink or swim. If they choose to sink I say, let them no matter how big they are. The 'shake out' will be those who pick up the pieces and swim. I see a trend in this Country to bail out big companies (except all those gas and fuel companies, let's just Nationalize them)[said in sarcasm]. Those companies who are buying up the failures, are doing something right to be able to afford them. Example B of A purchasing Merrill Lynch. 'Hub

I couldn't agree more..The Government's excuse is.. these companies are "TO' woven into Americas economy to let them fail.

SO.. instead lets have government bail them out and let government be further involved or "woven" into our personal lives.

If it crashes the market will reset itself.

I would also like to know the qualifications for bailing out one company but refusing to not bail out another(Lehman brothers)

[AngelinaCatHub]

I couldn't agree more..The Government's excuse is.. these companies are "TO' woven into Americas economy to let them fail.

SO.. instead lets have government bail them out and let government be further involved or "woven" into our personal lives.

If it crashes the market will reset itself.

I would also like to know the qualifications for bailing out one company but refusing to not bail out another(Lehman brothers)

[AngelinaCatHub]

Where is Eastern Airlines today? However Delta got bailed. ‘Hub

[Mi Bankruptcy]

LOL, OK Hub.. I was following yout.. then you lost me with your last statement..

[justbroke]

When the Federal Reserve "loans" money to a company, I don't consider that a waste of the People's money "yet". The Fed loans money everyday to Banks. The Fed makes money from interest on government securities, and it is that money that they loaned.

Because it's a loan, and not a "grant", there is recourse. If the company does finally fail, the Fed owns 79.9% of AIG and can sell the assets. AIG does have enough assets to cover that $85B loan.

First, it's an "up to" $85B line of credit. Second, it's fully collateralized by AIG assets. Third, AIG is actually forced to liquidate parts of its business to pay the credit back in 24 months (2 years).

I don't see this as a run-of-the-mill bail out, like Fannie-Mae and Freddie-Mac.

Remember... Federal Reserve is quasi-government. It's really a Bank for Banks. While they derive their power from Congress, they operate like a business... unlike other parts of the Government.

I'd be MORE shocked, alarmed and kicking and screaming if Congress itself, sent money to "bail-out" AIG.

Of course, that's just my opinion.

[Mi Bankruptcy]

Great info.. Can you tell me where you get your information to support your numbers.. I would like to read more about it. Thx

Of course, I think we hijacked this thread. Sorry people.

[justbroke]

Great info.. Can you tell me where you get your information to support your numbers.. I would like to read more about it. Thx

Of course, I think we hijacked this thread. Sorry people.

From the Federal Reserve Board's press release on the same... http://federalreserve.gov/newsevents.../20080916a.htm

[AngelinaCatHub]

LOL, OK Hub.. I was following yout.. then you lost me with your last statement..

My statement: Eastern Air, do you remember them? "The wings of man". They are History. However, Delta got bailed out. 'Tis my meaning. Are we gonna continue to be a welfare state???? 'Hub

[AngelinaCatHub]

Great info.. Can you tell me where you get your information to support your numbers.. I would like to read more about it. Thx

Of course, I think we hijacked this thread. Sorry people.

Even though the Op opened this thread about something else, we have gotten very good information here. I appreciate the Op's indulgence. 'Hub

[Mi Bankruptcy]

I don't remember the bail out. I am 35. So, if it happend prior to 20 years ago. I was more likely worried about where my next beer was coming from and why my girlfriend was 'late'

So, When did that happen? I understand your position on the welfare state. However, it sounded like you were supporting the bail out.

Additionally, I ran across this foreclosure article from the San Fran Chronicles. Worth a read if you interested in how some these investment firms are failing after issuing bad loans based on false appraisals.. I can truly identify with some of these things. Although I have never missed or been late on a house payment. I did use my broker to help me get my appraisal.

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2008/09/14/INSD12Q9RC.DTL