Posted by Steve Markowitz on August 15, 2010
Since the 2008 AIG bailout, U.S. taxpayers have sunk about $130 billion into this company. Taxpayers now own about 80% of the AIG. How’s our company doing? Here is a report from the Wall Street Journal:
“On Friday, AIG posted a $2.7 billion net loss for the second quarter due to a large goodwill impairment charge for an overseas life insurance unit that is being sold to MetLife, Inc. The insurance businesses that AIG plans to hold on to posted a $2.2 billion operating profit. AIG’s net loss per share was $3.96. Excluding various gains and losses, the company said its “adjusted” earnings per share was $1.99 in the second quarter.”
So, AIG lost $2.7 billion, but that really was not a loss since they had a $2.2 operating profit. Hmmmm. Only on Wall Street and within the government are losses not really losses. This logic helps explain why the government is trying to “fix” a recession caused by excess debt by creating even more debt.
Posted in AIG, Debt, Governmental Intervention | Tagged: AIG, Bailouts, Debt, Government, Loss, Recession | Leave a Comment »
Posted by Steve Markowitz on February 27, 2010
Reuters reported that American International Group had a quarterly loss of $8.9 billion, mainly caused by loss reserves and efforts to repay the U.S. government. This comes after the US government rescue of about $182 billion last year. As a result, AIG shares fell over 9.3% percent on Friday afternoon trading on the New York Stock Exchange.
The U.S. government (American people) owns nearly 80 percent of the insurer. Obviously our government didn’t invest the peoples’ money wisely. Why should they; it’s not theirs. Adding insult to injury, in a regulatory filing AIG warned, as it has done in previous filings, that it may need additional U.S. government support.
AIG is but another sign that the bailouts have failed. All they accomplished is to allow bad companies to continue doing business and moved debt from the private to the public sector. Sooner or later the bill will have to be paid. The politicians know this, but are attempting to have it paid on someone else’s watch.
Posted in AIG, Bailouts | Tagged: AIG, American General Finance, Bailouts, New York Stock Exchange, Politicians, US Government | Leave a Comment »