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U.S. should’ve let AIG fail: Stockman - Fast Forward

Monday, Apr 01, 2013 - 02:57

David Stockman, President Reagan’s budget director, says the government should’ve let insurer AIG go into in bankruptcy instead of bailing it out during the financial crisis. None of the policyholders would’ve been hurt, adds Stockman, who debated former Obama budget director Peter Orszag.(April 01, 2013)

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Since we only had a one point. For some trillion deficit into on nine that wasn't enough and so we kind of made the Fed. Goal off the deep end in print money and I this is literally -- fact at 600 million an hour. And what is it done is simply re inflated every bubble and I know the Russell 2000. You know we've got guys right here on the back to John Deere lawnmowers LBO guys in the Scottsdale Arizona. Buying up all the properties in yet the latest speculative bubble. None of this is healthy none of that sustainable is due to the fact that interest rates are zero and we're creating a huge subsidy for speculation. That's all relative to an absolutely. -- at the end. It's lost he's -- you know would you not would you like that uses -- UK. -- -- Yeah I think you're asking me terribly. Yeah yes because actually what that shows you is that we're up to 3%. From where we were in 207. The week -- recovery history well. -- it's not real. -- you know it's not relative because the fact is if you look at something longer get over your recent -- biased. Get over yesterday's statistics that are put out by the statistical -- Look at the thirteen year -- since last time the stock market was where it is today. That was actually 400750. Days ago it was where it is today march 2000. We've had essentially no job growth since then 171000 a month nothing compared to our population of 150. We've had no investment -- 1% a year since then the median family income is down 8%. The network for the bottom 90% since that last. March 2000 is down 30%. So if you think all of these bubbles have been great things if you think just more money pretty. And all of this Wall Street Copley and bailing out of golden Morgan all the rest of them who. We're facing the fate they deserve. This would've actually burned out in the canyons of Wall Street never would've gone to that company street bank AIG. AIG was you should have been gone to bank bankruptcy court. Because all of the bad CDS they wrote was in the holding company. It was all of -- -- -- of the largest base in the world including Barclays Societe Generale. In a whole bunch of other people and -- socialist governments to bail them out if they really wanted to. You know that the point is none of the policy holders of AIG in the subsidiaries would have been hurt. Because -- capital standards. Dividends stoppers and state regulatory agencies that would stop the people on the top floor of AIG. Of -- apple in the --

U.S. should’ve let AIG fail: Stockman - Fast Forward

Monday, Apr 01, 2013 - 02:57

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