http://blogs.reuters.com/reuters-dealzone/2008/09/17/aig-wipeout/ Behind the deals and deal-makers Thu, 23 May 2013 22:03:14 +0000 hourly 1 http://wordpress.org/?v=3.4.2 http://blogs.reuters.com/reuters-dealzone/2008/09/17/aig-wipeout/comment-page-1/#comment-338322 Jay Mintzer Wed, 17 Sep 2008 21:23:27 +0000 http://blogs.reuters.com/reuters-dealzone/2008/09/17/aig-wipeout/#comment-338322 Does anyone see the similarity between the Feds handling of the AIG debacle and the way the Bush Administration handled Katrina? On Sunday night AIG needed a bridge loan of $20B. Knowing (at least they should have known) that it wasnt possible the Fed insisted that AIG find private financing. When that private money didnt materialize and after sitting on their ignorant hands for 36 hours they ended up agreeing to provide $85B to save AIG. They ended up wiping out the shareholders of the company and seem very proud of that fact. Did they forget that the AIG shareholders are millions of Americans that owned this stock, often in their IRAs and 401Ks. You wonder why the markets reacted negatively? If you had limited confidence in the markets you now have even less confidence as an invester in Uncle Sam. Does anyone see the similarity between the Feds handling of the AIG debacle and the way the Bush Administration handled Katrina? On Sunday night AIG needed a bridge loan of $20B. Knowing (at least they should have known) that it wasnt possible the Fed insisted that AIG find private financing. When that private money didnt materialize and after sitting on their ignorant hands for 36 hours they ended up agreeing to provide $85B to save AIG. They ended up wiping out the shareholders of the company and seem very proud of that fact. Did they forget that the AIG shareholders are millions of Americans that owned this stock, often in their IRAs and 401Ks. You wonder why the markets reacted negatively? If you had limited confidence in the markets you now have even less confidence as an invester in Uncle Sam.

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