AIG, one of the struggling financial giants, announced a $60 Billion plus loss in the last quarter of 2008. And will be getting another $30 billion infusion from the government. These are really unfathomable numbers to us ordinary people who would be hurting if we had a $600 loss in any quarter of a year. But despite this, it’s these same taxpayers that will be on the line for the $30 billion infusion aimed to save this insurance company.
Even though it had just posted its largest quarterly loss ever, AIG’s shares were actually up in early morning trading (showing the type of news the market has come to expect from these companies). The overall market, however, took a beating dropping to lows not experienced since 1997.
There was a report that consumer spending had slight increase in January. And there’s our shred of good news in tough times.
What is your view on this? Should the government continue to bail out these firms? Post a comment. *Note: I expect 0 comments, because I have 0 readers at this point, but I thought I’d ask to be nice.