Friday, September 19, 2008
ANGRY
I feel like the world is spiraling out of control.
Last week's tragic Metrolink crash that killed 25 people and injured hundreds could have easily been prevented by the engineer who should not have been texting at the time. And he shouldn't have been working in the first place, since he already worked the morning rush-hour shift. It also could have been prevented if the trains installed the crash-prevention technology that is already available.
Thousands of Chinese babies are being treated for renal failure because of tainted baby formula. Obviously, this could have easily been prevented too. And now I hear that the chemical is also in other dairy products as well. It's such a shame to see China continue to make products that cause health concerns and need recalling.
Also, the US economy's downfall has caused the world's to drop sharply too. The US government seems to be flailing its arms trying to show that it's taking action. I guess this is similar to what FDR was doing iwith his New Deal. It remains to be seen what the new proposed rescue plan will do for stocks and various banks. In any case, we, the taxpayers, will pay the price for all the poor mortgages and loans people were offering and accepting over the last several years, including paying to save AIG. It frustrates me to know that we worked hard to take out a legit loan that we could afford and still must pay the price for the many faults of others.
Maybe I'm not being loving enough, but these various news items all seem to frustrate me and make me angry.
At least it's good to hear that people within the Galvaston and Houston areas are trying to help out their fellow neighbors by cleaning up, distributing supplies, and sharing electricity with those that do not have it.
Comments:
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It frustrates me that the media has no accountability in providing news to the public. Every company makes bad business decisions (i.e. Coke coming out with new Coke and Coke black, McDonald's and their unpopular menus, Microsoft and Vista, etc) however, all these companies have a profitable side to their business that can cover their mistakes. AIG is no different. They have a strong and profitable insurance business diversified all over the world. The media exposed AIG's "bad business" and thus created mass hysteria and customers demanding their money, etc. As a result, AIG did not have enough liquid assets to cover these demands. The government interceded with an $85 billion bailout. Now, despite what we think, the government is not that stupid...1) it was NOT a gift, it is a loan at an 8.5% rate and an 80% stake in the company. 2) It is a pretty good investment considering the loan is collateralized by AIG's profitable insurance business and when the company recovers, the government will reap a huge profit not including the nearly $7 billion/year in interest that the gov't will collect and 3) It shows that the government is acting in the interest of the people by both making a good investment and restoring some confidence back in the financial system.
What peeves me is that the news asks Average Joe off the street what he thinks about the gov't bailing out AIG with $85 billion. Average Joe answers, "I can't believe the government is using my hard earned tax money to give to AIG." And the news story ends. The news reporter feels no obligation to correct the interviewee and let him know that it is NOT a gift. Instead the public is misinformed to think that this is the "truth".
Obviously, drama sells and CNBC posted record viewership this week. Drama that they created themselves and sold to the unsuspecting viewers. To me, "lipstick on a pig" has transformed to this newest episode...What next????
What peeves me is that the news asks Average Joe off the street what he thinks about the gov't bailing out AIG with $85 billion. Average Joe answers, "I can't believe the government is using my hard earned tax money to give to AIG." And the news story ends. The news reporter feels no obligation to correct the interviewee and let him know that it is NOT a gift. Instead the public is misinformed to think that this is the "truth".
Obviously, drama sells and CNBC posted record viewership this week. Drama that they created themselves and sold to the unsuspecting viewers. To me, "lipstick on a pig" has transformed to this newest episode...What next????
# posted by 
: 3:03 AM
: 3:03 AM
if aig fell, who would pay the insurance to those who lost their houses in the hurricanes? who would be there to pay out on your 401k or ira? it's easy to get upset because the ecconomy is all screwed up, but the ramifications of aig falling would be felt worldwide. we have our fingers in so many different areas of world finance, that our downfall would have probably triggered the next great depression.
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