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Tom Francis - SWSports

On Thu, 13 Nov 2008 07:36:29 -0600, wrote:

On Thu, 13 Nov 2008 13:14:49 +0000, Tom Francis - SWSports wrote:

I agree with supporting the banking system - that's a plus and a must.
What I don't agree with is supporting a manufacturing corporation who,
through it's own stupidity, got itself into a mess and now wants the
average taxpayer to bail it out.

Another positive thing about bankruptcy, the managers that took the
company down, usually don't survive. What bothers me the most about
these bailouts is, the managers that failed are still managing. AIG, for
instance, that $440,000 party, these guys just don't get it.

Well, let's not get carried away with the blame there. That "party"
was paid for by independant agents who sell AIG products. That's a
pretty standard deal. The only cost to AIG was setting up the
"seminar" if that's what you can call it.

Still, I agree - it's pretty stupid PR.

I ain't buying it.

Personally, I think Sheila Bair has the right idea - buy up all the
fluky mortgages, take a small haircut, renegotiate the terms to keep
people in their homes and gradually sell the new assets back into the
system. It's cost neutral to the taxpayer and actually has the
potential to make the taxpayer money.

That part makes sense, but is it enough? This mess seems to be spreading
into other parts of the economy. I don't mind bumpy roads, it's the
downhills that suck.

I thought it was the right idea when the market started to collapse.
Everybody takes a small haircut, assets are saved, floors are put into
the market that are sound and everybody wins.

Instead we got TARP.

Bummer. :)