What is UP with the Fed?!

[Kim of VA]

First, no oversight regulations on these financial corporations and now I have to LEND them my tax dollars or just out and out bail them out of their troubles? Freddie Mac/Fannie Mae with the Fed as a conservator - now AIG with an $85 BILLION dollar tax payer loan!

Next week I'm sure I'll be reading about the sweet exit packages the AIG CEO, et al are given for their complete mismanagement.

I'm afraid to even peek at what is going on at the stock market today.

[maryellen]

It really pisses me off, that's all I can say. Nobody asked *me* if I wanted to own part of AIG. If the government makes a profit when it sells off parts of the company, do I get some $$ back?

Also, it makes Palin's recent "we're going to get out of the way of business" comment, which was preceded by "we need more regulatory oversight of these types of businesses" all the more frightening in its hypocrisy/lack of true plans/lack of knowledge (pick one).

[maryellen]

Oh... and by the way, anyone who grumbles because a single mom gets money from the government for food/daycare/rent whatever? That kind of HANDOUT is *nothing* compared to this one. Good lord... talk about bailing people out. Republicans think people should pull themselves up by their bootstraps? Really? How about companies? Doesn't apply to them?

[freddy]

Oh... and by the way, anyone who grumbles because a single mom gets money from the government for food/daycare/rent whatever? That kind of HANDOUT is *nothing* compared to this one. Good lord... talk about bailing people out. Republicans think people should pull themselves up by their bootstraps? Really? How about companies? Doesn't apply to them?

If that single mom fails financially, its impact is pretty narrow, although huge for a few people.

If AIG were allowed to fail, its impact would be hard to predict because nothing like that has happened before. It could potentially be catastrophic for the economy of the world. People compare our present economy to the depression now. I guess if we let AIG fail and go from there we might make the depression look good.

The lack of regulation is because congress forbid it in an act passed in December 2000, according to the guy I've been listening to on NPR. Its really disturbing listening to him explain these things.

[freddy]

First, no oversight regulations on these financial corporations and now I have to LEND them my tax dollars or just out and out bail them out of their troubles? Freddie Mac/Fannie Mae with the Fed as a conservator - now AIG with an $85 BILLION dollar tax payer loan!

Next week I'm sure I'll be reading about the sweet exit packages the AIG CEO, et al are given for their complete mismanagement.

I'm afraid to even peek at what is going on at the stock market today.

Did you want them to let them fail? Would that have been better? Sure, its going to cost money to bail them out. But lets hope it works. If it works, at least we'll still have some money to pay taxes with.

[maryellen]

If that single mom fails financially, its impact is pretty narrow, although huge for a few people.

If AIG were allowed to fail, its impact would be hard to predict because nothing like that has happened before. It could potentially be catastrophic for the economy of the world. People compare our present economy to the depression now. I guess if we let AIG fail and go from there we might make the depression look good.

The lack of regulation is because congress forbid it in an act passed in December 2000, according to the guy I've been listening to on NPR. Its really disturbing listening to him explain these things.

Yes, I know... you're right. I do see the big picture but still. The whole thing is just infuriating right now.

[freddy]

Yes, I know... you're right. I do see the big picture but still. The whole thing is just infuriating right now.

Um, yeah. I just hope $84 billion is enough. The guy said that AIG's guarantees to other institutions are more like 5 trillion, which essentially doubles our national debt, even though they'll write it in a different column so that it doesn't show up.

[Dani]

I'm smiling because....

It's a nice time to be broke. I already depleted my savings as a SAHM, so the plummeting stock market doesn't affect me at all! Haha!

[maryellen]

It's a nice time to be broke. I already depleted my savings as a SAHM, so the plummeting stock market doesn't affect me at all! Haha!

Me either... I've never been wealthy enough for stuff like this to have a big impact on me. I'm safely middle class!

[ybab]

Um, yeah. I just hope $84 billion is enough. The guy said that AIG's guarantees to other institutions are more like 5 trillion, which essentially doubles our national debt, even though they'll write it in a different column so that it doesn't show up.

Wasn't that guy great? I thought he really broke things down clearly. My favorite line describing what we have come to: "profits are privatized and losses are public(ized)". We don't get anything when these companies are flying high and then we have to dig them out of their own mess. I couldn't believe that an entire segment of the industry avoided regulation by using "credit default swaps" not categorized as insurance. IT MAKES ME SO MAD! And I thought he had another great point, about not being sure our elected officials understand enough of what's going on to appropriately regulate it.
We have no idea how many of these swaps are out there and how many companies are in a similar position.

But I think McCain has done a ridiculous about face - promoting himself as pro derugulation until things tank and then now saying regulation here is a good idea. It isn't too hard to say after the fact - gee, maybe we should have some regulation.

And then to hear how the Bush WH pushed for the war expenditures to be reported separately and not counted as part of the deficit? It is just so frustrating, to be an average person trying to make sense of this mess.

[freetibet]

I'm afraid this is going to impact far more than the 'wealthy' in the USA.

[maryellen]

I'm afraid this is going to impact far more than the 'wealthy' in the USA.

yeah, I know... I'm just keeping my head in the sand a little longer. It's nicer in there!

And I must add, if people don't see McCain's connection to this debacle and realize why he should NOT be our president, I don't know what will convince them. Also, Palin's complete misunderstanding of the situation.

[justLaura]

Absolutely.

My parents' retirement pension -- an annuity managed by AIG -- is by far the largest part of their retirement income. They are public school teachers -- my dad for over 37 years. They weren't given a choice about where to put their money.

So what happens to their funds "guaranteed" by AIG?

[Kim of VA]

No. I WANTED them not to have to come to me for a bailout.

Did you want them to let them fail? Would that have been better? Sure, its going to cost money to bail them out. But lets hope it works. If it works, at least we'll still have some money to pay taxes with.

But since the fox is watching the chicken house with all the "keep government out of business" BS, I find it particularly maddening that suddenly we're sticking the government wallet into the corporate hands.

[freddy]

Wasn't that guy great? I thought he really broke things down clearly. My favorite line describing what we have come to: "profits are privatized and losses are public(ized)". We don't get anything when these companies are flying high and then we have to dig them out of their own mess. I couldn't believe that an entire segment of the industry avoided regulation by using "credit default swaps" not categorized as insurance. IT MAKES ME SO MAD! And I thought he had another great point, about not being sure our elected officials understand enough of what's going on to appropriately regulate it.
We have no idea how many of these swaps are out there and how many companies are in a similar position.

Yes, I understood more after listening to them for half an hour than from anything else I've read so far.