To AIG Execs...
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From: Lost in the mountains
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From: Moving
Originally Posted by Will,Oct 9 2008, 08:44 AM
The retreat was for their independent contractors, their agents (not company execs). These same agents also represent many other companies other than just AIG. The company rewards them for selling well and making money for AIG. Many agents expect this and will stop selling for a company that does not award the expected bonuses. If AIG agents were to stop selling AIG policies, do you think AIG would be in a worse, or better financial condition?
Let me apply the supply and demand rules here. I'm sure there are many other independent contractors out there that will perform for less dollars and less rewards.
*Just using the same stupid argument everyone else uses when people are laid off.
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Most of the independent contractors suck and don't make much money for the company.
So you are basically advocating throwing away all the top producers (you know the ones actually making the money) and replacing them with people that producer less? Now the company's income will drop.
And that's going to save money how?
So you are basically advocating throwing away all the top producers (you know the ones actually making the money) and replacing them with people that producer less? Now the company's income will drop.
And that's going to save money how?
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From: denver
Originally Posted by Wildncrazy,Oct 8 2008, 06:24 AM
first off the "bail out" wasn't cause AIG didn't have any money. They had lots of money and LOTS of less liquid assets, but they had an extremely large call that they couldn't meet without using cash money they had.
Using said cash money would have lowered their reserve levels to below what the govt said they must keep in order to be an Insurance co. so the govt would have been force to close them.
They had two choices, meet the call and fold the insurance company, or try to dump huge amounts of assets on the market and sell at fire sale prices which would have worsened the economy.
Using said cash money would have lowered their reserve levels to below what the govt said they must keep in order to be an Insurance co. so the govt would have been force to close them.
They had two choices, meet the call and fold the insurance company, or try to dump huge amounts of assets on the market and sell at fire sale prices which would have worsened the economy.
they were conducting a very specutlive business:
they were insuring various bonds issued by companies. anyone, even those who did not own the bond could buy insurance against it. so there were several or hundreds of policies issued on any single bond. apparently only a few of the bonds failed but enough to take out AIG.
i am taking am issue with this in the thinking exactly what is out there? how frail is our economy??
this has nothing to do with the housing crisis as we are lead to believe.
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