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AIG Bailout!

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  • AIG Bailout!

    > Subject: AIG Bailout
    >
    >
    > This should go to Congress and every elected official:
    >
    >
    >
    > This is oversimplifying, but I like it. And I'm not the originator so I can't
    > take credit for it either. I'm against the $85 BILLION bailout of AIG.
    > Instead, I'm in favor of giving $85,000,000,000 to America in a
    > "We Deserve It" dividend. To make the math simple, let's assume there are
    > 200,000,000 bona fide U.S. citizens, aged 18+.
    >
    >
    > Our population is about 301 million counting every man, woman and child. So,
    > 200,000,000 might be a fair stab at adults 18 and up. Now, divide 200
    > million, 18+ adults into $85 billion - that equals $425,000.00 each! Yes, my
    > plan is to give that $425,000 to every adult as a "We Deserve It" dividend.
    >
    >
    > Of course, it would NOT be tax free. So, let's assume a tax rate of 30%.
    > Everyone would pay $127,500.00 in taxes. That sends $25.5 billion right back
    > to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their
    > pocket. A husband and wife would have $595,000.00!
    >
    >
    > What would you do with $297,500.00 to $595,000.00?
    > a. Pay off your mortgage ­ housing crisis solved.
    > b. Repay college loans ­ what a great boost to new grads.
    > c. Put away money for college ­ it'll really be there.
    > d. Save in a bank ­ create money to loan to entrepreneurs.
    > e. Buy a new car ­ create jobs .
    > f. Invest in the market ­ capital drives growth.
    > g. Pay for your parent's medical insurance ­ health care improves.
    > h. Enable deadbeat parents to come clean ­ or else.
    >
    >
    > Remember this is for every adult U.S. citizen, 18 and older (including the
    > folks who lost their jobs at Lehmann Brothers and every other company that is
    > cutting back) and of course, for those serving in our Armed Forces. If we're
    > going to re-distribute wealth let's really do it instead of trickling out a
    > puny $1,000.00 "economic incentive."
    >
    >
    > If we're going to do an $85 billion bailout, let's bail out every adult U.S.
    > citizen!
    > As for AIG ­ liquidate it.
    > a. Sell off its parts.
    > b. Let American General go back to being American General.
    > c. Sell off the real estate.
    > d. Let the private sector bargain hunters cut it up and clean it up.
    >
    >
    > We deserve the money and AIG doesn't. Sure it's a crazy idea, but can you
    > imagine the coast-to-coast block party?! How do you spell Economic Boom? W-e
    > D-e-s-e-r-v-e I-t D-i-v-i-d-e-n-d! I trust my fellow adult Americans to
    > know how to use the $85 Billion "We Deserve It" dividend more than do the
    > 'geniuses' at AIG or in Washington, D.C.
    >
    >
    > And remember, my plan only really costs $59.5 billion because $25.5 billion is
    > returned instantly in taxes to Uncle Sam. Good idea? I think so.

    ---------
    Got this in an e-mail!
    "Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has."

  • #2
    This is a great plan if you want to end up with Zimbabwe type hyper-inflation.

    The basic flaw in the idea is that the assumption is that prices for goods and services would stay the same after the money is distributed. Nothing could be further from the truth.
    "‎It is easier to build strong children than to repair broken men" - Frederick Douglass

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    • #3
      Brilliant,

      Comment


      • #4
        OR that the recipients would use it to satisfy existing debt instead of creating new ones using the funds as collateral or apportioning it to make small downpayments on several big items...cars, houses, boats etc.....

        Infidelity does not consist in believing, or in disbelieving; it consists in professing to believe what he does not believe. Thomas Paine

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        • #5
          the Government could bail out the mortgages

          Comment


          • #6
            yes...that would be a better option ....... ?

            but it is not really about the average american is it?

            Infidelity does not consist in believing, or in disbelieving; it consists in professing to believe what he does not believe. Thomas Paine

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            • #7
              Not as bad as printing 200K checks for everyone but not really a solution either.

              There are no easy ways out of this mess, if there is a way at all. Maybe this is the tipping point where the US realises that it cannot spend more than it earns forever and not have to face up to the consequences of that?
              "‎It is easier to build strong children than to repair broken men" - Frederick Douglass

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              • #8
                AIG closed at ~$4.00!!

                Last time: BUY!!
                The only time TRUTH will hurt you...is if you ignore it long enough

                HL

                Comment


                • #9
                  Originally posted by HL View Post
                  AIG closed at ~$4.00!!

                  Last time: BUY!!
                  You are assuming it shall not collapse?
                  ...assets sold off...the good stuff stripped...and the stock being worthless? Trust this support working?
                  "Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has."

                  Comment


                  • #10
                    How is giving the money to AIG any different.

                    Money supply increased similarly, so inflation still a problem.

                    In any case, $700b is a MUCH bigger problem.

                    Comment


                    • #11
                      In the case of the AIG deal a lot of wealth was destroyed as part of the process by almost wiping out the shareholders. So it is not as inflationary as simply printing money and handing out checks.

                      It is a theoretical argument though because if AIG was allowed to fail and the money was dropped from a plane instead, then the fallout would have destroyed so much wealth that the net effect would maybe still have been deflation.
                      "‎It is easier to build strong children than to repair broken men" - Frederick Douglass

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