This article was about the AIG bailout and the bailouts to other large companies around the United States. A few days after Lehman Brothers went bankrupt, the government lent the insurer $85 billion. In all, A.I.G. received $150 billion of government help: a $60 billion loan, $40 billion in exchange for a 79.9 percent equity stake and about $50 billion to capitalize two vehicles holding A.I.G.’s bad assets, but AIG promised to pay off the 60 billion dollar loan.
If you ask me i dont think the government should be bailing out companies like they have been. I understand there are some circumstances in which the government has to take part in. When AIG spent all of the bailout money, they gave their employees large bonuses. These employees already have a salary that is outrageous if you ask me.
http://www.nytimes.com/2009/02/27/business/27views.html
Thursday, April 2, 2009
Wednesday, April 1, 2009
Who's to blame?
I believe that unregulated lender's were the biggest factors in our recession. Lender's gave out loans on houses, that was their role. These lenders saw home value's on the rise and started lending money as fast as they could. The problem was that the loans were subprime and nobody was underwriting the loans. Anyone could get a mortgage even if they couldn't pay it back. When people could not afford to pay these loans back, lenders started to forclose and sell cheap decreasing the value of all homes. http://www.consumeraffairs.com/news04/2007/08/congress_mortgages.html
These lenders failed when they didn't recognize that home values couldn't continue to rise. They needed tougher underwriting to assure borowers could afford the loans. We can't put all the blame on the lender, we the consumer were also guilty trying to live beyond our means. I still think the lenders greed and fast paced lending was the main problem. Almost like they painted an unrealistic picture for main street America.
These lenders failed when they didn't recognize that home values couldn't continue to rise. They needed tougher underwriting to assure borowers could afford the loans. We can't put all the blame on the lender, we the consumer were also guilty trying to live beyond our means. I still think the lenders greed and fast paced lending was the main problem. Almost like they painted an unrealistic picture for main street America.
Jon Hennessy's current event blog
The title of the article was "House passes bill to limit executive compesation". It was about the vote that would give the Treasury Department the power to ban future "unreasonable and excessive" compensation at companies receiving federal bailout money. Democrats supported the bill, but the republicans were not in favor. This article stated Bonuses for people with incomes over $250,000 would be taxed at a 90 percent rate, but the measure has failed to clear the Senate.
I agree with that idea, I believe that the wealth in America should be distributed evenly. That way the poor people can benefit from tax cuts instead of just the wealthy. It seemed to me that president Bush just made tax cuts that benefited the wealthy, while the rest of americans did not see those benefits.
I agree with that idea, I believe that the wealth in America should be distributed evenly. That way the poor people can benefit from tax cuts instead of just the wealthy. It seemed to me that president Bush just made tax cuts that benefited the wealthy, while the rest of americans did not see those benefits.
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