Another Bailout for AIG

Looks like $150 billion wasn’t enough to stop the bleeding at AIG – we’re getting ready to give them more money. 

According to Reuters AIG is asking for more aid and bracing for a fourth-quarter loss of roughly $60 billion, a source familiar with the matter said. It would be the biggest loss in a quarter in corporate history.

The $60 billion would exceed Time Warner’s $54 billion single-quarter loss in 2002 and dwarf the $24.5 billion loss AIG posted in the third quarter, when the government increased its rescue package for the insurer to about $150 billion.

By contrast, two analysts polled by Reuters Estimates have forecast on average a net loss of $5.46 billion.

The latest round of talks with the government include the possibility of additional funds for the insurer and trading debt for equity, another source said on Monday.

How many billions more are we going to dump into these financial cesspools?  Why not simply let them go broke?  That’s what needs to happen in order to get through this mess – the bad debt needs to be accounted for and written off. 

This is just giving the wino another drink.


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