Posted On: November 12, 2008, 3:14 pm CST

Posted By: Fed Up with AIG

The AIG bailout is nothing more than redistribution of wealth with the poor being forced to pay the rich. Remember, some of the AIG stockholders are worth billions.

Why do I say this? AIG made billions of dollars writing credit-default swaps. They immediately booked all premium as profit (no loss reserves) thus increasing the corporate profit. This increased both the stock price and the dividends for current policyholders. It is also amazingly stupid to assume there can never be any losses just because there haven't been any.

Now, after this inconceivable level of stupidity causes the organization to go bankrupt, we poor taxpayers are told that it's our responsibility to make sure these amazingly rich people don't lose any money because of the stupidity.

AIG was run into bankruptcy by its amazingly stupid management team much like many other companies were in the past. It is not a good company that just needs a little help. ($150 billion is not just a little help)

AIG should be allowed to die with its subsidiaries sold at fire sale prices. A higher price benefits only the stockholders, not the taxpayers. Please don't tell me the taxpayers are the stockholders - we're only one step away from Paulson and Bush giving up our 80% ownership - expect it in December.

When you buy a stock, you take your chances. AIG has no guaranteed right to exist regardless of the stupid decisions made by its management team.