Wednesday, September 17, 2008

I don't get it

I'm reading that if the bailout of AIG had occurred on Saturday, it would have been for $20 billion, but today, it's $85 billion. I'm also reading that instead of collateral, the Fed is taking ownership of 80% of the company and firing all of the chief executives, and this over a crisis of liquidity, not actual bankruptcy.

And I'm told that the big issue with Fannie Mae and Freddie Mac is that they're buying all of these mortgages without really looking at whether they're to a creditworthy borrower, and that when those went south, so did they.

You know, I'm just sure of two things here. First of all, I'm glad it's the insurance company, and not Answers in Genesis, in trouble, and second, I think that a lot of financial instruments are getting too complicated to keep accountability in place. Maybe it's time to return to what the Scriptures say about the dangers of debt, and of wearing oneself out to get rich.


Gabrielle Eden said...

What happens to AIG now?

Bike Bubba said...

Basically the federal government is going to try to recoup the money by selling them for parts, if I read things correctly.

Gabrielle Eden said...

Yeh but I've got my insurance through AIG.

Bike Bubba said...

Your insurance is fine for now, or at least that's what's promised.