Arrogance? Or just Clulesness?

[Lloyd Danforth]

I don't know if these guys are just throwing shit in the face of their saviors or just,  'Way  Bla-Zay!!

http://apnews.myway.com/article/20081008/D93M0K6G3.html

http://www.thesmokinggun.com/archive/years/2008/1007083aig1.html

[41mag]

WASHINGTON (AP) - Less than a week after the federal government had to bail out American International Group Inc. (AIG), the company sent executives on a $440,000 retreat to a posh California resort, lawmakers investigating the company's meltdown said Tuesday.

Does this mean they are going to return the bailout money since they obviously don't need it?   

[John Edward Mercier]

AIG didn't get a bailout... they got a loan.
So they are supposedly going to repay it with interest.

[PattyLee loves dogs]

AIG didn't get a bailout... they got a loan.

Except that it wasn't a "loan" because it was far below the market interest rate (assuming that there even was a rate at which anyone would give those guys more tens of billions to lose). Is it OK with you if I force you to "loan" me all your money at below-market interest, John  ????

[PattyLee loves dogs]

Oh, and I'd say since they have the tens of billions of our money, that we have a total monopoly on cluelessness. There's none left over for those guys; they have to make do with arrogance (and our money)   

[John Edward Mercier]

AIG didn't get a bailout... they got a loan.

Except that it wasn't a "loan" because it was far below the market interest rate (assuming that there even was a rate at which anyone would give those guys more tens of billions to lose). Is it OK with you if I force you to "loan" me all your money at below-market interest, John  ????

The rate is LIBOR + 850 basis points... which is around 12.5%.
I don't hink I could get that type of return with a nearly 80% equity stake.
Heck, I don't think I could get that type of return with no equity stake.

[watershed]

It must be nice to have been breed with a silver spoon.... I bet some of these dumbasses felt as though they probably deserve this...meanwhile I can barely afford hot water to take a long hot shower at home.

Well....Big Government in bed with Big Business......where's Big Religion in all this?

[John Edward Mercier]

Corporatism in for-profit and non-profits is BIG RELIGION in the US.

Its more like their sipping champagne on the deck of the Titanic as the band plays.
They know what's coming.

I remember seeing a movie were the bow of the Titanic began to sink... sent panic through those still on board. When the bow tore away from the aft, the aft righted itself... making those on the aft deck think the crisis was over and the ship would stay afloat. But any good engineer would have realized it was
'last call on the bubbly'.

[PattyLee loves dogs]

The rate is LIBOR + 850 basis points... which is around 12.5%.

Doesn't matter if it's 100% interest, John, no private party was going to lend money to a beyond-bankrupt. GSE. So the offer stands: is it OK if I force you to "loan" all your money to me at below-market interest rates?

[John Edward Mercier]

AIG isn't a GSE.
Nor is it insolvent.

LIBOR is a market rate.