Article: The AIG Bailout Article Review by Nicky
Article: The AIG Bailout
Looks at J. W. Schoen's article, "Why Can't We Just Let AIG Go Under", about AIG's need for the bailout and about the process of interbank borrowing.
# 148350
| 1,360 words
| 1 source
| APA
| 2011
| 
Published
on Oct 12, 2011
in
Business
(Companies)
, Economics
(National)
, Political Science
(Fiscal Policy (economy))
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Description:
This paper relates that the core question of J. W. Schoen's article, "Why Can't We Just Let AIG Go Under", is, given AIG's behavior before and after receiving the bailout money, for what reasons cannot the government just let these big companies fail. Next, the author relates Schoen's argument that, without the bailout money that was given to AIG, many states like California, banks and investment firms, other corporations and businesses and the economies of the US and other countries would have been affected deeply and negatively. The paper concludes that the solution might be to sell off the pieces that make up AIG because, as the article stressed, despite the bailout, AIG is not doing its part to improve its situation.
From the Paper:
"This is not a mere opinion of mine; it is a conclusion drawn from the author's explanation of banking principles, especially in the area of bank interconnectedness and the rationale behind bank loans. According to the author,if AIG had failed other banks would have also failed. The problem with allowing a bank to fail is that banks are interconnected; it is like a global river of money that people rely on to keep the economy moving. If too many banks fail, the river of money starts drying up and reaches a critical level of dying, so the government needs to quickly pump more money to return the river of money back to a safe level."Sample of Sources Used:
- Schoen J.W. (n.d.) Why can't we just let AIG goes under? Also: Why do banks lend money to each other?
Cite this Article Review:
APA Format
Article: The AIG Bailout (2011, October 12)
Retrieved June 09, 2023, from https://www.academon.com/article-review/article-the-aig-bailout-148350/
MLA Format
"Article: The AIG Bailout" 12 October 2011.
Web. 09 June. 2023. <https://www.academon.com/article-review/article-the-aig-bailout-148350/>