Quote of the Day, Nationalizing AIG Edition

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

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Alex Knapp
About Alex Knapp
Alex Knapp is Associate Editor at Forbes for science and games. He was a longtime blogger elsewhere before joining the OTB team in June 2005 and contributed some 700 posts through January 2013. Follow him on Twitter @TheAlexKnapp.

Comments

  1. DL says:

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

  2. Crust says:

    Hilarious.

  3. Steve Plunk says:

    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. “Socialists only nationalize successful businesses.”

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

  5. Michael says:

    “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 says:

    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 says:

    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 says:

    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.