AIG
CIT Enters Organized Bankrupsy – Chapter 11
Nov 3rd
The Chapter 11 filing is one of the biggest in U.S. corporate history, following Lehman Brothers, Washington Mutual, WorldCom and General Motors. CIT’s bankruptcy filing shows $71 billion in finance and leasing assets against total debt of $64.9 billion.[Source]
The topic is so startling I opened the post with a quote. One of the largest bankrupsies in history just occured, and it wasn’t a bank that lends to corporations and government. CIT is a bank that lends to small and medium sized business, contributing to the growth of the backbone of the country. Without small to medium sized business this nation would be a fascist corporatocracy.
“CIT is the 600-pound gorilla in the industry,”[Source]
The US has bailed AIG and the entire American car industry, they let Lehman Brothers fall, and now CIT. There choices of who to bailout are quite questionable. While AIG may have had more assets, the fact that CIT lent to the backbone of America, and was allowed to fail lead to a question of rationality used in determining who should be bailed out. Ultimately the US chose to bailout corporate lenders, rather that small scale lenders.
When Will Change Come – Bank After Bank Fail
Sep 15th
When and how will change come? Change of society in particular typically comes after a dramatic event. I believe a dramatic event is occuring with the collapse of over 9 banks this year alone, in addition to the recent collapse of Fannie May, Freddie Mac, Leyhman Brothers, and AIG. Bank of America is also contemplating purchasing Meryl Lynch. This is simply a tremendous occurence and has never occured in the history of our country. The amount of money lost as a result of mortgage borrorers not being able pay has simply destroyed the economy of the US. All blame cannot be placed on the borrowers, and much blame should be placed on de-regulation policies that gave lenders free reign to do literally what every they want. Republicans want free reign, with corporations having control over their policies. Democracts want slightly more government regulation of the corporate decision making process. Frankly extremes never work, and a balance is needed. Currently there has been almost complete de-regulation, which is obviously the cause of this disasterous economic situation. Democrats need to step in a impose a moderate degree of regulation in order to stablize a devastated American economy; and to control the agressively malicious lending policies of powerful monetary institutions.