Do you remember the statement.. It is the economy,Stupid…Maybe the same words are effecting President Obama’s approval ratings. They are slipping as Americans are worried about the economy. Obama’s approval rating slipped to 59 percent from 64 percent last month. All in all Americans still generally support Obama’s handling of the economy however more questions are cropping up.
Since we the taxpayers own approx 80% of AIG shouldn’t we have some say in their affairs. As 80% owners should we approve payouts of $450 million in bonuses for employees in the unit that lost $40.5 billion last year. What happened to the idea of rewarding preformance. This is reward for FAILURE!
The Cleansing Effects of Crisis, Part II: The Horror of AIG
Citigroup looks like it is going to break below $1 per share. It’s time for Citigroup to be nationalized. it’s not Pandit’s fault but I don’t see how he can keep his job with the stock in free fall. Can Citi lure any other highly successful competent executive to take this job right now?
AIG was in the busines of writing derivative contracts and swaps. Last year this aspect of their business has put them at deaths doorstep. In the fall of last year AIG was saved from collapse with a package that grew to $150 billion of bailout money. It has not stopped with, now AIG is seeking another $30 billion in new capital.
Who will Survive AIG or the Derivatives Nightmare?
This is no ordinary downturn. After the biggest credit bubble in history, we face a correction on an unimaginable scale. Make no mistake about it: This is a credit-cycle bust that the government cannot stop. The losses are already catastrophic. And the massive unwinding is nowhere near finished yet…