22thoroughbred

We've Crossed the Line from Capitalism to Socialism

Bailout seems to be a nice catchy phrase, but does anyone remember when the gov't. bailed out Chrysler they made 10's of billions of dollars, and it's not a bailout for AIG, the gov't bought 79.9% of the co. which BTW increased in value by $15b on Friday, so the gov't will make billions there as well, and if anyone thinks the gov't will lose money buying debt at approx. 30 cents on the dollar and being able to hold it for 3+ years you are just drinking the kool-aid. Making a loan to AIG at LIBOR + 8.5% with 80% of the co. as collateral is not a bailout, especially if the co. has $150b portfolio of good assets but neess time to liquidate, time the market wasn't giving. With Bear Stearns the gov't. didn't write a check, they just said they would take some assets that couldn't be liquidated off the books of JP Morgan which is in essence doing the same as with AIG, the gov't has the staying power to wait, the individual companies do not. Any lucid replies?