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This is really starting to bother me. These giant financial institutions make tons of money by taking RISKS. When things go well they make lots of money, peop
by fusionman 18y ago
This is really starting to bother me. These giant financial institutions make tons of money by taking RISKS. When things go well they make lots of money, people get big bonuses and the rest of society gets to read about "Talented Bankers and Their $50mil Bonuses" on the latest cover of Forbes. When things don't go well, the government gives them a loan to bail them out or else our economy will collapse. What choice do we have?
I don't know the answer here, but I don't like this.
At least in Venture Capital and startups, we understand that risk is risky, and we take the good with the bad.
- tptacek 18y agoDoesn't this deal basically amount to the orderly liquidation of AIG?
- fusionman 18y agoIt would appear so. The government isn't an investment fund, so I am curious as to what their exit strategy is for this "investment". I'm sure they'll come out OK. I wonder where their profit (assuming there is a profit) will actually go.
- andrewf 18y agoRisks are borne by owners, not employees. AIG shares are in the crapper and now the government is taking 80%. The owners are being punished.