Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

AIG getting bailed out again, why would it be bad if they failed?

First, I'm not trying to start anything, but I'm sure this will end up that way.

Can someone explain to me in a ration, politically neutral way, why we can't let AIG fail?

I just heard on the news that they are going to get even more tens of billions of dollars on top of what they already got and I can't for the life of me figure out what the consequences of just letting them go under would be.

Please try to keep political hated out of this, it's really tiring to see and I really just want someone to explain this to me and not why Obama is the Antichrist or it's really all Bush's fault. Thank you!

 
Anonymous

Asked by Anonymous at 3:33 PM on Mar. 2, 2009 in Politics & Current Events

This question is closed.
Answers (21)
  • It's easy to say we should let them fail, unfortunately it's not that cut and dry.
    AIG is one of the largest trading groups within the Western banking system.
    OP:
    Read this.

    heatherama

    Answer by heatherama at 5:02 PM on Mar. 2, 2009

  • *rational* sorry
    Anonymous

    Answer by Anonymous at 3:33 PM on Mar. 2, 2009

  • It would be bad because some people would lose money and others would lose jobs.

    Course the same is true for all the small businesses going under every day, but they aren't "worthy" of bailing out because they don't have the same scale.

    AFAIC, they should let them fall, get it over with, and move on, along with a lot of the other things they're going to be propping up with TARP II
    NotPanicking

    Answer by NotPanicking at 3:36 PM on Mar. 2, 2009

  • It's the American society. We now reward those that don't take care of themselves (or their company) and punish those that do...
    The punishment- if you are wondering- is through higher taxes. Ironic ain't it?
    Why are we doing it? We can't imagine a world where smaller companies thrive.
    Erica_Smerica

    Answer by Erica_Smerica at 3:37 PM on Mar. 2, 2009

  • So it's just because it's a really big company with a lot of fingers in the pudding so to speak? Thanks for your answer!
    Anonymous

    Answer by Anonymous at 3:38 PM on Mar. 2, 2009

  • I agree. I am really interested in seeing the responses. I believe that the concern is that if it fails, so do many businesses and can start off the domino effect, causing a whole lot of businesses to fail. Plus, now that the feds own part of it, they won't let it fail because this is the beginning of the socialist take over (starts with Nationalization of our financial institutes).

    Anonymous

    Answer by Anonymous at 3:40 PM on Mar. 2, 2009

  • (OP)

    Hmm Anon 3:40, I hadn't thought of it that way. I can see that now. Thanks.
    Anonymous

    Answer by Anonymous at 3:44 PM on Mar. 2, 2009

  • I think that AIG is just one of the many "former" major corporations that should go under. I don't care if they lose their jobs. They should have thought of that when they took their luxurious vacations with the first bail out!! Hell! Let the auto industry die too. If a company has been bailed out and still can't get it, why throw more money at them? The only way I think it would be good to invest in them again is to completely overthrow their corporation and have the small business people come in and work there. THEY ACTUALLY KNOW WHAT HARD WORK IS!!!!
    Anonymous

    Answer by Anonymous at 3:46 PM on Mar. 2, 2009

  • I think they should let them fail, sure jobs are going to be lost and it would be sad but this is a lesson that needs to be taught so other companies don't come asking for a bail out because they aren't doing things correctly.

    Anonymous

    Answer by Anonymous at 3:49 PM on Mar. 2, 2009

  • (OP)

    I lean toward letting them fail too. I was against the first bail out as I couldn't understand what good it would do then either. Auto companies too. I just chalked it up to not being informed enough, well now I have read, and read, and read and still can't figure it out.

    I don't care about it being a lesson, but I just don't see the point in dumping money down a failing business.
    Anonymous

    Answer by Anonymous at 3:57 PM on Mar. 2, 2009

close Cafemom Join now to connect to other members! Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN