Capital Markets

General Electric: The Worst Bailout in the World

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March 26th, 2009 6:04 PM Eastern
General Electric: The Worst Bailout in the World

By Phil Kerpen
Policy Director, Americans for Prosperity

We’ve been hearing over and over again about the astonishing $182.5 billion in bailout funds that the federal government has been pouring into AIG, but you might be surprised to learn that a close runner up to AIG in the bailout sweepstakes is General Electric, which got its own $139 billion bailout in November. So with Congress and the media in a frenzy over AIG bonuses, where’s the GE outrage?

In a wild rant on MSNBC—owned by General Electric–Keith Olbermann denounced Citigroup CEO Vikram Pandit’s salary, AIG, Northern Trust, and other bailouts recipients, which he called “vast engorged gluttonous multinational corporations whose sneezes can be fatal to our jobs, whose mistakes can turn us into the homeless, whose accounting errors can be so panoramic that they can make our economy tremble and force us to hand them billions after billions in a blackmail scheme that has come to be known as ‘bailout.’”

That’s great stuff, but somehow, in his righteous indignation, he forgot to mention his own employer’s massive bailout or his own hefty salary on the list of horribles that followed.

Read the rest at Fox Forum.


Hey, It’s Only a Trillion (or More)

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March 23rd, 2009 1:10 PM Eastern

By Phil Kerpen
Director of Policy, Americans for Prosperity

The new Obama-Geithner plan to buy up bad bank assets is an improvement over the original Paulson-Bush plan for the government to simply buy up toxic assets directly. That plan was abandoned shortly after the Trouble Asset Relief Fund (TARP) bill was passed because it would have been too expensive and because there was no agreement over how to price the assets–set the price too low and banks would be hurt instead of helped by the deal, set the price too high and taxpayers get ripped off. The private part of the Obama-Geithner plan solves that problem, but the public half–the reliance on substantial taxpayer funding–is another misstep, and could ultimately cost trillions of dollars.

Read the rest Fox Forum.


Kerpen calls for Geithner to resign on CNBC

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Had trouble getting out my plan for AIG: sell-off the real businesses and go to bankruptcy court. See here.


Time to Pull the Plug on AIG

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February 25th, 2009 5:00 PM Eastern

By Phil Kerpen
Director of Policy, Americans for Prosperity

The once-great insurance behemoth American International Group, or AIG, is now the living dead. It lives only because of massive taxpayer life support that is because of bailout after bailout of ever-increasing size. It started with a $85 billion bailout in September of 2008, which seemed outrageously large until taxpayers were forced to up the ante to $150 billion in December! The federal government now owns eighty percent of AIG, and is positioning taxpayers to make potentially unlimited future bailouts if AIG isn’t wound down.

Read the rest at Fox Forum


Rescuing the Rescue Plan

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Why not fund it with tax-advantaged private funds?
By Phil Kerpen
September 30, 2008 8:49 AM

The surprising congressional defeat of the Treasury’s bailout plan triggered one of the worst stock market days in history, destroying trillions of dollars in shareholder wealth. The narrative that carried the day was that ordinary taxpayers shouldn’t pick up the tab for the excesses of Wall Street. But the half of American households that own stock may be surprised to see how much inaction costs when they read their next retirement-account statement, due soon with the third-quarter ending today.

Most members of Congress understand the gravity of the current seize-up in credit markets, but many bowed to political pressure from back home and voted against the rescue measure. Fortunately there is a solution that can solve both the political problem of putting taxpayer dollars at risk while getting credit flowing again and soothing the stock markets: Fund the rescue plan with tax-advantaged private funds.



Derivative Dangers Threaten Global Markets

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Derivative Dangers Threaten Global Markets
By Paul Strand
CBN News Sr. Washington Correspondent
September 21, 2008

CBNNews.com - Add up the gross domestic product for all the world and it comes to about $50 trillion.

But now there's a wild trade going on between investors in something called "derivatives" that adds up to more than $700 trillion.

Read the rest and see the video at CBN News.


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