Outside the Beltway

Quote of the Day, Nationalizing AIG Edition

Alex Knapp
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“No, no. Relax. We couldn’t possibly be socialists. Socialists only nationalize successful businesses.”
— John Scalzi

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8 responses to “Quote of the Day, Nationalizing AIG Edition”

  1. DL Avatar
    DL

    What is a bailout anyway but a reverse windfall profits tax – think of it as a stimulus check for the government.

  2. Crust Avatar
    Crust

    Hilarious.

  3. Steve Plunk Avatar
    Steve Plunk

    Is a loan the same as nationalization of a business? AIG has plenty of hard assets to secure the loan. Those assets include the “government backed” securities from Fannie Mae and Freddie Mac.

  4. Chris Lawrence Avatar
    Chris Lawrence

    “Socialists only nationalize successful businesses.”

    And then promptly run them into the ground. But that’s a story for another day.

  5. Michael Avatar
    Michael

    “Socialists only nationalize successful businesses.”

    And then promptly run them into the ground. But that’s a story for another day.

    So what you’re saying, is: In Capitalist America, failure socializes you?(*)

    (*)See, this is why OTB needs a moderation system, this should cost me something…

  6. Crust Avatar
    Crust

    Steve Plunk:

    Is a loan the same as nationalization of a business?

    No, not necessarily. However when you combine it with the government getting an 80% equity stake it is.

  7. Steve Plunk Avatar
    Steve Plunk

    Crust, I would disagree. AIG has plenty of assets to back the loan and the government has no intention of running the business if AIG defaults. The 80% stake is only in the case of default. This is not anywhere near nationalization of a business.

    Fannie Mae and Freddie Mac were nationalizations but they always carried the implied backing of the government.

  8. Michael Avatar
    Michael

    Fannie Mae and Freddie Mac were nationalizations but they always carried the implied backing of the government.

    But an 80% stake in AIG doesn’t imply government backing? AIG may not have been like Freddie and Fannie last week, but it’s quite a bit closer now.

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