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09-18-2008, 09:01 PM #1OPSenior Member
McCain and the AIG crisis
I agree with he article below. McCain does not understand the AIG crisis. McCain just does not have the ability or brainpower to handle something like this, which involves saving the American financial system from complete ruin.
Does McCain Understand The AIG Crisis?
Huffington Post | Rachel Sklar | September 17, 2008 12:21 PM
Last night around 7:30 p.m., news emerged that the federal government would bail out troubled insurance giant AIG with an $85 billion loan. In exchange, the federal government will own 79.9% of the company.
The bailout was an effort of last resort, meant to save AIG from being forced to declare bankruptcy â?? which would have made it the biggest bankruptcy of all time, with major reverberations across the economy considering its trillion-dollar balance sheet and global ties across numerous industries. Earlier in the day yesterday, when a loan package failed to emerge, the market dropped just contemplating the possibility of an AIG bankruptcy. Last night on CNN, Campbell Brown introduced the news saying, "This affects almost everyone out there who has a 401K." An AIG bankruptcy would have been a very, very big deal.
You would not have known that, however, from John McCain yesterday on the "Today Show." Yesterday morning, McCain sat for an interview with Matt Lauer that was notable first and foremost for the strangeness of his demeanor: Wooden, sullen, and repeating the same talking points over and over again. Lauer asked all the right questions, but failed to elicit more from McCain than repeated exhortations against "fat cats" and "Beltway insiders." At one point, McCain was almost hostile to Lauer when he pressed him on the "fundamentals" issue ("There's nothing wrong with the workers of America. I believed that they're the fundamentals. You may not, others may not").
But Lauer was able to break through a bit on AIG, pinning McCain down on whether he thought the Feds should bail out the insurance giant, even if McCain gave no indication as to why:
LAUER: So many people in this room today will be watching what happens with American Insurance giant AIG....you heard Maria [Bartiromo talking about it a second ago. They need something in the neighborhood of 75 billion dollars to become secure again. What should the government do? First of all, do we even have that kind of money in the system?From this interview, there is absolutely no indication that McCain knew and appreciated this. His response was unilateral, couched in terms of taxpayers being "on the hook" rather than being vulnerable to the losses that an AIG bankruptcy would trigger. Meanwhile, yesterday's market tanked even more just contemplating the possibility of an AIG bankruptcy, hours before the buyout plan was finally announced.
McCAIN: The government should not â?? of course, this is one of the outstanding and glaring examples of the terrible problems and corruption and greed and excess that has caused all of this fallout â?? which is going to harm the average American worker...no, I do not believe that the American taxpayer should be on the hook for AIG. And I'm glad that Secretary Paulson has apparently taken the same line.
LAUER: So if we get to the point middle of the week as we heard in that report where AIG might have to file for bankruptcy, they're on their own?
McCAIN: Well...quote, "on their own"...we have to - we cannot have the taxpayers bail out AIG or anybody else...this is something we're gonna have to work through â?? there's too much corruption, there's too much access, we can fix it, I believe in America - we can have a 9/11 commission such as we had after 9/11, 'cause this is a huge crisis and we can come up with fixes and we can make sure that every American has a safer future and that is to make them know that their bank deposits are safe and insured.
That was yesterday morning in the 7 a.m. hour. Cut to twelve hours later, and the feds did the exact opposite. Why? Because of those 401Ks, because of the interdependence of the economy with AIG's vast web of interests, because, to paraphrase CNN's Ali Velshi last night, the economy could take losing an investment bank but AIG, not so much.
This should worry Americans, for obvious reasons â?? not only because of what McCain clearly failed to grasp about the situation, but because he didn't seem even really to try. In the middle of the worst financial crisis in years, he was surly, wooden, and uncooperative as an interviewer asked legitimate questions â?? precisely when it was most important to be forthcoming.
While McCain's testiness yesterday morning was well-noted, his glib assertion regarding AIG didn't get traction in the news cycle until today, when he reversed himself somewhat (see here and here; I didn't see this moment highlighted on "NBC Nightly News" or on MSNBC's post-AIG announcement coverage, though I may have missed it). But to my mind, it was the most important and revealing moment of the interview, because it revealed that McCain had little to no understanding of the issue. Even his statement today on "Good Morning America" â?? "There are literally millions of people whose retirement, whose investment, whose insurance were at risk here" â?? was not even hinted at in his Today show comments.
McCain's answer yesterday on AIG was not an accident. Put bluntly, I can't see any evidence that he knew what he was talking about; nor any evidence that he wanted to try. This is a blatant moment, on tape, under urgent questioning from the media at a moment of crisis, and not only was his lack of preparation apparent but his attitude spoke volumes. This isn't a matter of left or right, of "gotcha" or "in the tank" or anything else â?? it's a matter of accountability at a pretty critical moment. It should be noted, and remembered.
Does McCain Understand The AIG Crisis?Breukelen advocaat Reviewed by Breukelen advocaat on . McCain and the AIG crisis I agree with he article below. McCain does not understand the AIG crisis. McCain just does not have the ability or brainpower to handle something like this, which involves saving the American financial system from complete ruin. Does McCain Understand The AIG Crisis? Huffington Post | Rachel Sklar | September 17, 2008 12:21 PM Last night around 7:30 p.m., news emerged that the federal government would bail out troubled insurance giant AIG with an $85 billion loan. In exchange, the Rating: 5
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09-18-2008, 09:17 PM #2OPSenior Member
McCain and the AIG crisis
Originally Posted by Billionfold
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09-18-2008, 10:25 PM #3Senior Member
McCain and the AIG crisis
His suggestion not to devalue the American dollar is true. Is the US government in the business to bail financial companies who are not responsible? More companies are going to keep failing, should the government bail out every company? It sets a precident. One of these days the bullet has to bitten, otherwise the deficit will continue to rise.
McCain is definitely an elitiest, after all, he voted against keeping companies from price gouging oil and gasoline. He's the typical for-profit republican. However, I think he's right in some sense. When do we draw the line?
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09-18-2008, 10:29 PM #4Senior Member
McCain and the AIG crisis
Originally Posted by Billionfold
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09-18-2008, 11:05 PM #5OPSenior Member
McCain and the AIG crisis
Originally Posted by thcbongman
This is only a loan, which they (AIG) must pay back with interest. If the company really takes off agin, and it very well could, the taxpayers will be rewarded with profits. To let the company go down would have been a disaster.
AIG aside, 40,000 jobs in NYC alone are lost because of the economic downturn in the past few weeks. Additionally, for every job in the security industry that is ended, two or three jobs in other sectors are lost accross the country.
We're trying to avert a major depression, the beginnings of which have already has had worldwide consequences.
I did not intend to vote for Obama, but I'm afraid he's the only one smart enough to understand the situation.
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09-19-2008, 01:15 AM #6Senior Member
McCain and the AIG crisis
Originally Posted by thcbongman
BTW Why when I point my cursor at those green blocks does it say "AJ is just really nice" Apart from that being absolutely untrue, what does it even mean?
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09-19-2008, 02:09 AM #7Senior Member
McCain and the AIG crisis
Originally Posted by Billionfold
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09-19-2008, 03:47 AM #8Senior Member
McCain and the AIG crisis
AIG, with assets spanning a global total of $1.2 trillion, facing bankrupsy without a government bail out. Freddie Mac and Fanny May, owning 50% of America's mortgages, go bankrupt.
Seems companies right left and center have been going bankrupt these last few years. Meanwhile the national debt has exploded to over $9.3 trillion. And yet, somehow, McCain keeps insisting that the economy is strong and George Bush has done a bang-up job with it. Where's the change? Where's the awakening to fiscal responsibillity? Has McCain anounced some major change to the way things are done in Washington, and I was sleeping in a cave that day? Good Christ; and people will continue to vote for same 'ol, then expect change.
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09-19-2008, 05:36 AM #9Senior Member
McCain and the AIG crisis
Originally Posted by Gandalf_The_Grey
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09-19-2008, 06:01 AM #10Senior Member
McCain and the AIG crisis
"While I think mccain would be an improvement over bush, and obama over mccain, things have gone to far for political solutions. The time is right for violence, revolution does not come through elections. It comes when leaders are crucified on telephone poles."
I could not disagree more. More good would come from a politician such as Ron Paul in office then could ever come with you being locked in a room with a machine gun and the countries political power players. To think violence is the only solution is silliness. After we hang the bastards who is in charge? Probably the person who hung the most people. No thanks.
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