Re:Fed takes over AIG
by helveticaman on Tuesday September 16, 2008 @10:50PM
(#306617)
The market collapse of a whole economy? How's Google going to get torched by this? Or Boeing? Or most exporters?
More directly related to Boeing, according to the NYT (http://www.nytimes.com/2008/09/17/business/17aig.html), AIG has an aircraft leasing division that was planning to buy 73 aircraft this year.
In the short term the lack of credit availability could dent manufacturers, but those businesses that make real things that people want should be ok if they can survive until credit is again available to their customers.
because they are part of an integrated economy. where will google's advertizers find their ad budgets in a stagnant economy? boeing is no different. would these firms be as adversely impacted as wamu? no. but everyone suffers.
Obviously, these bail outs have their costs, such as the value of money lent as well as increased moral hazard, but it's worth considering whether this is worth the potential cost of a market collapse to the whole economy.