I came across this in an e-mail sent to me today and thought I would share it.  By the way, I have no idea who this Birk guy is but I personally giv ehim an A+ for creativity.
 

"This idea sounds just crazy enough to possibly work, so naturally it won't be given serious consideration.  How great is our bureaucracy!!

Hi Pals,

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in thei r pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads

Put away money for college - it'll be there

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves

Enable Deadbeat Dads to come clean - or else


Remember this is for every adult U S Citizen 18+ including the folks who lost the ir job s at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( 'vote buy' ) economic incentive that is being proposed
by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can 'never work.'

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than I do t he geniuses at AIG or in Washington DC

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J . Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!"

 
Post is included in group: Out Of The Box!
Post is included in group: The Lounge at Active Rain

7 Comments on AIG Bailout, one mans take on it all

SEP
26
2008
5 Featured Posts

Joe... just read this exact post on another AR blog, only the amount was a little different.

10:20am • #1

This would be a fair suggestion if the government was just giving the funds to AIG.  They are, however, lending it to AIG at a high interest rate and taking an ownership share in the company.  It very well may work out to be a total loss if things don't go well but they're going in it as a loan.

This does show how much $85 Billion actually is though.

10:22am • #2

Interesting perspective.  What about all the unpaid claims on voided insurance policies?  And, if you can't trust your insurance, lenders won't loan without a solid policy on a house or car.  No insurance, no loans.  And where would we put our money?  All the banks are pretty weak.  The cases of people being defrauded out of their windfall would be tremendous.

10:25am • #3

Randall, I would have to say that an influx of so much money would make any bank strong again.  Read about the Financial Crisis and Consumer Confidence.  You are correct about people getting defrauded, however.

10:31am • #4
SEP
28
2008

I hope you aren't doing the numbers for the real estate transactions.  This Birk proposal contains a grade-school math error.  (Divide 85 billion by 200 million) .   I used this in class about an hour after seeing it as part of critical thinking exercise.

 

MN Teacher
12:01pm • #5

MN Teacher, that is hillarious!  I didn't even review the numbers because I thought it was ridiculous anyway.  now it shows that this definitely wasn't thought out well.

It should be changed to "What would you do with an extra $425?".  Oh, wait.  That would be $297 after taxes.  I guess we shouldn't just accept numbers and statements from so called experts like T. J . Birkenmeier.

1:02pm • #6
SEP
08
Outside Blog

Hi Joe. this was a great post. Nice to see something new and informative. Hope to work with you someday!

David.

David Home Inspections

4:34pm • #7

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Joe Zapata - Your Burbank Real Estate Expert

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