The imbecilic TARP bailout’s poster child appears to be American International Group (AIG). At least the poster child for what government interference creates. If the first bailout did not work, what makes the government think further bailouts will work? The definition of insanity is doing the same thing over and over and expecting different results. Now you know why I call our government insane.
Today the government has announced a revamped rescue package to AIG and plans to give the insurance giant another $30 billion like a revolving credit line. The reason the company needs another bailout is because it has burned through the cash the tax payers have already given to it and cannot find any buyers for parts of the company that it has put up for sale. Those pieces of the company need to be sold so that the government can be repayed for the current aid package which just happens to amount to $150 billion. AIG lost $61.7 billion in the fourth quarter of last year.
AIG’s chairman and chief executive Edward Liddy was on NBC’s “Today” show this morning and said, “We’re going to be able to pay back the. The new $30 billion is a standby line. It’s not necessarily something that we think we’ll have to draw on right away.” I feel confident in that promise.
Anybody else feeling hosed?