AIG gets taxpayer bailout...BONUS?

[moosmom]

Puckstop,

How about we agree to disagree. Fair?? Friends??

[pomtzu]

Ready for Round 2.........

[lvpets2002]

Ready for Round 2.........

Yup let the Mud Slinging Begin.. I see why this chick has shorts on..

[Puckstop31]

Puckstop,

How about we agree to disagree. Fair?? Friends??

Fair Dinkum.

[sasvermont]

I found this on the internet and don't know how accurate it is or is not, but none the less, it makes me feel a tad better, knowing that this banking fiasco and financial meltdown was just about due!

A sample of great financial and economic crises since 1870:

2008-09

Global credit crisis arising from U.S. mortgage markets

1999 to 2002

Argentina economic and banking crisis; GDP fell 15% in two years

2001

Tech bubble bursts

1998

Russian ruble crisis

Collapse of Long Term Capital Management fund

Japan bank rescue

1997-98

Asian currency crisis

1995

Mexico peso crisis

World Bank bailout of Argentina's banks

1989-93

Finland's per capita GDP falls 12.4% in wake of Berlin Wall falling

1991

Japan real estate bubble bursts

Early 90s

Swedish banking crisis

1989-91

U.S. Savings and Loan debacle, rescue cost 5% of U.S. GDP

1944-47

U.S. per capita GDP contracts 16.5%

1939-45

Second World War

1929-33

Great Depression: U.S. per capita GDP drops 29%;

Canada's falls 34.8%

1918-21

U.S. financial panic; 11.8% drop in per capita GDP

1906-08

Failure of U.S. banking trusts, per capita GDP falls 10.5%

1914-18

First World War

1893-97

U.S. recession and banking failures

1873-78

U.S. recession and banking failures

1874-78

11.7% contraction in per capita GDP in Canada

- - -

[smokey the elder]

I see your point about economic booms & busts. I think some things make this one different (all this strictly my lay opinion):

1. I thought the option ARMs were so much rope a number of years ago (as in give someone enough, they'll hang themselves.)

2. Point #1 was exacerbated by greedy brokers writing fraudulent mortgage paper.

3. This fraudulent paper gets mixed in with perfectly legit, albeit risky, other subprime paper and gets sold to a hedge fund.

4. Said hedge fund is insured by AIG.

5. Housing prices crash, and ARMs reset, setting off the detonator!

6. Banks become super risk-averse, not lending. Credit enters an Ice Age.

7. The whole economy is dragged down by this mess.

Here's why I think the "bailouts" are the best of a bunch of lousy options: a. Very early data suggest that they may be working. b. This won't be the first time (S&L meltdown, anyone?) that the Fed has had to step in.

Maybe my crystal ball has a bog divot in it. But I think letting the economy "right itself" may take a lot longer (like Japan); but Americans do have a different temperament, and the oil shocks and recession have demonstrated that we can change our habits.

OK, I've rambled on WAY too long!

[RICHARD]

1998

Russian ruble crisis

Barney Rubble Crisis-BamBam and Pebbles caught playing doctor.