What is the point in this "stimulus package"? Is it really worth surviving sick institutions?
Stepping back a little, AIG was given $170 billion to get rid of its toxic assets and survive the "huge" losses. Then we were talking about accountability, transparency, etc. A little while ago, when Liddy of AIG announced bonus, and subsequently disbursed it, the outrage was about $165 million in bonuses and we just forgot the big picture - what is happening to the $170B, and how is AIG planning to pay back? We were arguing over an expense that is less than 0.1% of the total stimulus provided.
Come to think of it, why should credit be extended to banks, and subsequently planned to be extended to the common public, while the government can directly give it back to them in the form of tax cuts? Perhaps, we are getting ahead of ourselves - what is the worst that could happen when banks fail? FDIC would have to pay back depositors of the bank. Of course, FDIC would tank when every depositor in every bank has to be paid. But in retrospect, can't the government support FDIC during such an instance? Though the banks are on life-support, there is no guarantee that they will survive, and payback.
