Thursday, February 23, 2012

How Companies Make Money Now

Pretty sad that the way AIG is able to make money is by receiving a huge tax break.

I'm just a layman, but it strikes me that AIG got bailed out and now doesn't need to pay taxes. That sounds like a good deal to me. If I go bankrupt would I get bailed out and then not need to pay taxes for 10 years? I doubt it. Herein, of course, lies the problem with the bailouts - if they succeed, then it's the government picking winners, if they fail, it's the government throwing good money after bad. Hard to spin either way.

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