Back in April 2009, my brother Joe Hoft contributed this guest post here at Gateway Pundit – Setting the Record Straight on AIG – where he argued that AIG, Citibank and other companies had come under a great deal of pressure by the same people who had the most to do with getting these companies in their current predicament in the first place. Joe added:

The Bush administration went to Congress more than 10 times in the years preceding this disaster (17 times in 2008 alone), asking for a review and changes to Freddie and Fannie with no avail. Bush then stepped in and offered loans to several of these institutions in order for them to stay afloat. The goal was to push liquidity back in the market place. One of the largest insurance companies in the world – AIG, came calling and the government offered them a loan. Loans were given to other entities as well. The key here is that these entities were given loans not grants.

Well recently AIG paid off its debt to America – every dollar.

Today my brother Joe sent this in:

I told you so –

AIG has paid off its debt to the nation. According to the InsuranceJournal.com, “Since September 2008, America committed a total of $182.3 billion in connection with stabilizing AIG during the financial crisis. Since then, through asset sales and other actions by AIG, the Federal Reserve, and the U.S. Department of the Treasury, the government recovered the $182.3 billion, plus a combined positive return of $22.7 billion – for a sum total of $205 billion. On Dec. 14, 2012, the U.S. Treasury sold its last remaining shares of AIG stock for proceeds of approximately $7.6 billion.”

Per propublica.org now the country has only $155 billion in outstanding loans from the TARP and related programs put in place to stabilize the economy in 2008. The banks and insurance companies have repaid their debts and then some. The government actually made money on these loans. The remaining balance can be attributed to four entities – Fannie, Freddie, General (Govt) Motors and a small amount to Chrysler. It’s doubtful whether these loans will ever be repaid.

This saga raises some questions -

Will all those who jumped on the Democratic band wagon that complained about the money lost to AIG but never said a word about Fannie, Freddie and the auto bailouts, now repent? Will there finally be public outrage of the huge salaries at Freddie and Fannie given to the like of Raines and others who then went to work for Obama? When Democratic strategists talk about budget deficits will they now note that the majority of the 2008 deficit under GW has been repaid in the Obama years? It’s doubtful the answers to these questions will ever be ‘yes’.

Joe Hoft moved to Hong Kong in 2012 after he was asked to set up a regional Asia Pacific department for his company. As Executive Director Asia Pacific Global Audit, Joe travels from Tokyo to Sydney, attends Board Audit Committees and works with corporate management throughout the region. His company is one of the largest corporations in the US.

 

 

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  1. As Executive Director Asia Pacific Global Audit, Joe travels from Tokyo to Sydney, attends Board Audit Committees and works with corporate management throughout the region.

    I am duly envious.

  2. The bailouts were still a terrible precedent set by Bush. In a capitalist system, AIG and the other stupid companies should have been allowed to fail and been liquidated. And the lesson would have been learned by the surviving companies to not pull these shenanigans again. Instead, Bush was weak and furthered the idea that bailouts (aka socialism) are normal and acceptable reactions to foolish bets made by private companies. This will incentivize financial institutions to make further foolish bets and put the taxpayer at risk.

    Just because Bush was a republican doesn’t justify the transfer of risk from private investors to the US taxpayer. Republican socialism isn’t any better than Democrat socialism. It actually is worse because it neuters the Republican Party from making the argument that free market capitalism is the best economic system for mankind, thus furthering the socialistic policies the democrats want to impose on us all.

  3. Thank you, Joe Hoft. The Democrats don’t care. Sad isn’t!!!! Tom

  4. When Democratic strategists talk about budget deficits will they now note that the majority of the 2008 deficit under GW has been repaid in the Obama years? It’s doubtful the answers to these questions will ever be ‘yes’.
    ~~~~~~~~~~~~~~
    Now, that is how you do things!!

  5. Yeah under Obama the economy really did turn around thanks for.pointing it out

  6. My company is a direct competitor with AIG. We did not need a bailout, because we are not incompetent. We beat them in the free market. We competed. We did better. We won. Had they gone into Chapter 11 (not Chapter 7), we would happily have taken more market share and achieved more success.

    Instead, AIG got their bailout. The next day (literally), they lowered prices below market value in order to win back business. Obviously we couldn’t do that since we didn’t have a government loan, we needed to continue to make a profit. Thus, AIG kept and even gained business.

    So the incompetent business continues on, free to be incompetent. The better business that won the free market fight is dealt a set back (but we are still doing great). That isn’t capitalism. It’s crony capitalism.

  7. How did there operations net them 182 billion with which to pay the government back? If that did happen in only 3 years, there market cap would be exploding by now. They would be worth almost as much as apple computer. Apple only earns about 25 billion in profits per year, so even they wouldn’t have been able to pay off more than 40% of that sizeable loan that AIG got.

    AIG didn’t pay off anything. They likely got free money from the Treasury and used it to cover other operational costs, thus freeing up cash flow which was then used to pay off such a large amount.

    Tell me, if AIG did pay off the 182 billion in only 3 years, does that mean they will report 60+ billion in profits for 2013, given that they are operating the same as 2012, but now they don’t have that huge loan responsibility any more?

    Answer: Not a chance.

  8. So what? They shouldn’t of got a dime of our money. Not a damn thing has been done to prevent the same thing from happening again, and it will happen again. Read “Bailout” by Neil Barosky. He was the first IG for TARP. We were robbed then and we’ll be robbed again.

  9. So what? They shouldn’t of gotten a dime of our money. Not a damn thing has been done to prevent the same thing from happening again, and it will happen again. Read “Bailout” by Neil Barosky. He was the first IG for TARP. We were robbed then and we’ll be robbed again.

  10. Sorry

  11. I totally agree with the sentiment that NO private company should have received a dime of taxpayers’ money because of their business situation. This is simply NOT the role of the US Government.

    Next: it’s my understanding that AIG and others involved in the bundled mortgage crap loans were able to somehow get this crap off the market (by use of taxpayers’ money) and stored them away so that eventually they can bring it back out, put a pretty new bow on it and resell it again. This only means that disaster has been put on hold, not avoided.

    Finally in answer to

    When Democratic strategists talk about budget deficits will they now note that the majority of the 2008 deficit under GW has been repaid in the Obama years?

    Heck no! I’m sure these paybacks have already been reported as “revenue” from the “private sector that is doing fine”.

    Do the majority of you know just how screwed We the People are?





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