feds to bail out AIG

[Chicago526]

Banks are one of the most regulated entities on earth. Where were the examiners during all of this screaming that the loans being made were not good ones. Oh, it was because the bosses in Washington were pushing issues of CRA... get as many people who can't afford the loans into houses. This was wonderful for the banks' CRA (Commuty Reinvestment Act) ratings. Regulators want banks to lend money to people who are teetering on the fence on whether they'd be able to repay it or not. In the government's eyes, the more people who can get loans can help get themselves into a better position. The only problem is when they can no longer afford the loan for which they signed up.

While regulators were patting bankers on the back for lending money to people who couldn't afford the loans, they weren't looking at the mortgage portfolios. The fact that Freddie and Fannie were buying these loans is evidence of a horrible business practice. But, the dems were getting what they wanted and their saviour, Bill Clinton, wanted more people in homes. Well, they had them... at least temporarily, until they truly couldn't afford them.

I'm sorry, which President gave a speech in 2002 saying he wanted more home ownership? Clinton may have signed the bill that McCain's good buddy Gramm wrote in 1999 but that same bill was passed by a Republican House and Senate, and Bush took the ball and ran with it. The Dems may not be totally blamless in this mess but neither are the Republicans.

 

[cteddiesgirl]

Totally agree, but this corporation going under would crush our economy. I"m concerned that the FED is playing puppet master with the markets. Will it work?

Bear Stearns
Fannie and Freddie
AIG
Next????

Therefore is the problem with having giant corporations. If just one company can do this to and entire country's economy, and "competition is good", then why are these giants allowed to happen?

And it really kills me that the guy who ran the company is getting $8 million in settlement money. Sorry. But any company that is having to be bailed out by the government, (you and me in the long run), the execs have no business being paid millions of dollars.

 

[RUDisney]

And it really kills me that the guy who ran the company is getting $8 million in settlement money. Sorry. But any company that is having to be bailed out by the government, (you and me in the long run), the execs have no business being paid millions of dollars.

That, we agree on. I don't care how much a CEO is paid when the company is doing well. It is up to the stockholders to decide if salary levels are excessive or not. Once the company needs welfare, then the American people should have a say. But, I also believe that we should be able to provide specific rules for those who are on welfare, too, just like we have rules for our children. If I have to raise you, I should have a say in how you live your life. If you don't like it, then get a job and stop taking handouts.