Tuesday, May 8, 2012

The United States Will Earn a $15.1 Billion Profit From Bailout of AIG

Moaners and groaners were out in force when U.S. President George W. Bush announced that the government would bail out insurer AIG, with calls of "socialism" and other such malarkey.  Those people likely never had a college education, or at least not a good one, for anyone that knows anything about economics knows that the country could not have survived given AIG's enormous inner dealings and holdings.

AIG insured nearly all the big companies and some foreign governments as well.  Had they been allowed to collapse, it would have sent the country and the world into deep collapse by extension, perhaps worse than the Great Depression that began in 1929, coincidentally the last time that Republicans had control of the presidency, the House, the Senate and the Supreme Court for more than one year.

Bush reluctantly agreed to bail out AIG, and it was one of his best decisions as president.  President Obama agreed that it was the right move, showing his great intelligence.  And rather than 25% unemployment and deficits of $4-5 trillion per year, we now have 8% unemployment and a 
deficit of $1.2 trillion.

The Government Accountability Office issued a report Tuesday that the U.S. Treasury may eventually turn a $15.1 billion profit on its bailout of insurer AIG (when all final payments and asset sales are complete.

Bush absolutely made the right move when he bailed out AIG.

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