September 16, 2008

here are a couple of questions that just popped in my head:

Is anything in this country not run by fucking lying cheats? If the government is going to take over 79% of AIG, shouldn't we all get free insurance? How about health insurance? More generally, what the fuck? Are we living in the Soviet Union or something?*

"The Federal Reserve has tentatively agreed to provide $85 billion in emergency lending to insurance giant AIG in hope of preventing a bankruptcy that could send tremors through the U.S. and global financial markets, according to two sources familiar with the plan.

In exchange, the Fed would get rights to 79.9 percent of AIG's stock, a source said. One source said the government would replace the company's management while the other source said the government gained the right to replace the chief executive and board and appeared likely to do so.

The company would be put up as collateral. The insurance subsidiaries of AIG, which are regulated by state authorities, would be excluded from the arrangement, a source said. The proceeds of any asset sales would be used to pay down the federal loan.

The plan must still be approved by the governors of the Federal Reserve.

The rescue represents a stunning turnaround for federal officials, who this weekend stressed they would not provide taxpayer money to bail out private companies. Without such a federal backstop, investment bank Lehman Brothers failed to find a buyer and was forced to file for bankruptcy earlier this week. "

*...and if we are, can we send some people to Siberia, please.

p.s. you can see Siberia from Alaska.

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