Government Bails Out AIG With $85 Billion!
I am not sure how you could have missed what is going on with the economy, however each day there is new news. The latest news involves the government bailing out IAG Insurance Company with a 85 billion dollar loan. Last week the government was bailing out Fannie May and Freddie Mac. We are in a position of having to have our government save these mega giants. These bailouts show what kind of situation we are in now, but what could happen next?
The unfortunate side of this is that none of this has caused any major “positive” changes with our housing crisis. However, the Freddie Mac and Fannie Mae bailout has allowed rates to go down and maybe have a few more people go out and get a new mortgage loan. The latest news is the possibility of changes with Washington Mutual. Hurricanes, takeovers, bailouts, high gas prices, loss of jobs, foreclosures… is there something good going out there? There has to be! Let’s find the positive.
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It’s definitely a rough situation across the states right now. The federal government is always stuck between a rock and a hard place, in my opinion. If they act, something doesn’t go according to plan and the media blows it up to the equivalent of the Watergate Scandal. If they don’t act, the media points fingers all over the place while getting to use their two most FAVORITE words in the English language: blame and fault. With Fannie Mae and Freddie Mac, the federal government determines what they can and cannot do, for the most part, so it was a good move. Not to mention, the combined existing mortgages that they guarantee are greater than the gross domestic product of every country in the world except for the top seven. As far as bailing out private companies or publicly held companies…not a big fan myself. But, they did save quite a few jobs and could have prevented a lot more damage to the economy and the global markets.
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