(GuruFocus, November 10, 2009) It is one thing the government bails out businesses and tax payers eventually shoulder the burden, one way or another. It is another thing that the government officials in charge decide which business to rescue and which to let go. The first issue concerns the principle whether government should get involved in business at all; the second, often invites criticism for fairness and favoritism of government officials involved.
To this day, many people think Lehman Brothers should be rescued last September by the government. The government could have spent a couple of billion dollars to back-stop the firm and achieve the same results that later on it had to spend hundreds of billion dollars.
The housing bubble continues to burst on, and stories about the rises and falls of companies continue to unfold:
Today, three companies were featured in the same WSJ article:
FBN's Sandra Smith on Moody's saying it believes AIG can pay back the $120 billion it owes taxpayers.
Watch the latest business video atFOXBusiness.com (Source: Fox Business Network)
Watch the latest business video atFOXBusiness.com (Source: Fox Business Network)
At one time, maybe even now, both MBIA and Amback sought help from the government and were denied access to the numerous bailout programs. AIG, on the other hand, was offered essentially a blank check from the government.
What a irony it will be when MBIA or Amback was taken into some sort of receivership (bankruptcy) and AIG survives and thrives after taking from and paying back to the government the $120 billion.
To this day, many people think Lehman Brothers should be rescued last September by the government. The government could have spent a couple of billion dollars to back-stop the firm and achieve the same results that later on it had to spend hundreds of billion dollars.
The housing bubble continues to burst on, and stories about the rises and falls of companies continue to unfold:
Today, three companies were featured in the same WSJ article:
MBIA's (MBI, Financial) third-quarter loss narrowed slightly as losses in the insurance business were greater than expected and the housing downturn continued to cause asset losses. The bond insurer posted its fifth quarterly loss in the past two years. Rival Ambac Financial Group Inc. (ABK, Financial) also dropped as it said paying off debt coming due in August 2011 could be a problem, leading it to consider strategies that include a prepackaged bankruptcy filing.
Moody's Investors Service said American International Group Inc. (AIG, Financial) should be able to repay the federal government's senior secured loan and much or all of its preferred stock stake, assuming the giant insurer's operations and the global financial markets stabilize further.
FBN's Sandra Smith on Moody's saying it believes AIG can pay back the $120 billion it owes taxpayers.
At one time, maybe even now, both MBIA and Amback sought help from the government and were denied access to the numerous bailout programs. AIG, on the other hand, was offered essentially a blank check from the government.
What a irony it will be when MBIA or Amback was taken into some sort of receivership (bankruptcy) and AIG survives and thrives after taking from and paying back to the government the $120 billion.
