AIG BEING RESCUED , BUT WALLSTREET LOSES FAITH IN PAULSON
see article :
while it may have been necessary to bail out AIG , wallstreet seems to have lost confidence in secratary paulson .
as i heard on the business news last night : "paulson could have rescued AIG for $20 billion on friday , but he waited until monday and paid $80 billion " .
apparently ther are now a number of other financial institutions and other large corporations hoping for a bailout .
looking at the financial news from around the world shows a pretty bleak picture : britain , germany , japan , canada ... not many positive business news .
(canada's - one time - industrial giant and darling NORTEL is reporting losses year-after-year . some years ago it was thought that nortel's growth was unlimited , shares were in the $100 plus range - you can pick them up for less than $10 now - about the price of wallpaper .)
even merril lynch - who one might think should be charitable towards mr. palson - is not impressed with his action :
The economists at Merrill Lynch, who gained first-hand experience in navigating stormy markets this weekend, predicted the AIG bailout will create as many problems as it solves. In a note Wednesday, chief economist David Rosenberg and Drew Matus said: “In the long run markets do not like inconsistency and prefer certainty."
“With this move the Fed and Treasury have blinked in the face of market pressure once again,” said Merrill Lynch. “They continue to react to situations rather than getting in front of them and now they have created uncertainty about what firms qualify for bailouts and which do not. Until that goes away, markets will continue to test their limits and that is not good news for markets going forward.”
as one commentator put it : "we are being told that capitalism and greed are great for mankind - but when the financial giants are in trouble they think they are entitled to 'socialized medicine' " - hmmm , makes me think .