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US Government gets involved in the ski industry

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Big-Punisher
Posts: 814 - Karma: 10
AIG collapsed this morning (no big surprise).

The US gov bailed out the company by purchasing the majority of the common shares. Among AIG's assets is Stowe Mountain Resort, which they've been pumping a ton of money into in recent years. My question is, will the government consider Stowe to be a reasonable investment worth financing, or can the resort be bought on the cheap right now?

I say pool your money together and buy it!
Sep 17 2008 12:09PM
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jtski
Posts: 805 - Karma: 21
Quote from Bill Stenger - President of Jay Peak




Stowe isn't the only ski company that could be impacted by AIG's troubles, according to Stenger. He says the company provides liability insurance to 70 percent of ski areas in the United States, including Jay Peak.

"The stability and success of their reorganization, whatever form it takes, is a very important thing not only to Stowe Mountain Resort and the village of Stowe, but also to the ski industry nationally," Stenger says.
Sep 17 2008 12:12PM
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R-B-B
Posts: 915 - Karma: 28
is anything going to change at stowe this year because of this?
prices, maintenance, employees???
Sep 17 2008 12:33PM
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punch
Posts: 17 - Karma: 10
This is bullshit! The government is now bailing out the net-worth of some of the richest people in the country. Now we all own a piece of AIG, but do not get any of the benefits. Where was the government when my corporation lost its clients and had to close down?
Sep 17 2008 12:47PM
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OAK_TREE
Posts: 2683 - Karma: 12
From what my economics teacher was telling me is that it does suck that the government is helping AIG, but they are stuck and kind of have to do it. If they don't do it then all the other countries that have bought up the loans and debts of AIG wouldn't be happy with the United States although AIG is a private firm. Reason being, AIG said that they will make good with the debt and if they don't the US government will help pay for it. Then when this happens and AIG can't pay up the US has to help and that means they have to spend more money which means more debt to the American People. Terrible thing that is happening.
Sep 17 2008 1:00PM
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Melvs
Posts: 15174 - Karma: 480

1. Become CEO of big finance company
2. Run company into ground through bad loan/debt managment and practices
3. Force US taxpayers to bail out company
4. Get fired/let go from job
5. Collect tens of millions in severence pay despite being at fault for everything that happened.

How the fuck does that make any sense?

Sep 17 2008 1:22PM
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SkierX
Posts: 16253 - Karma: 538
This is America, rich businessmen are NEVER responsible.
Sep 17 2008 1:28PM
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AltaByrdSkier
Posts: 544 - Karma: 15
yeah fuck big buisness
Sep 17 2008 1:33PM
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NWFlow
Posts: 1557 - Karma: 61
Yeah, the government bail-out of private corporations is complete bullshit.  I hate how firms like AIG love to promote and operate under the guises of a free-market economy, but essentially survive through somewhat socialistic government intervention.  Why not just move towards socialism nationally so more taxpayers can get the benefits of such a system as opposed to just the wealthy upper echelon employees of large multinationals?  AAAAAHGHGG sorry this is just really pissing me off.
Sep 17 2008 1:33PM
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RudyGarmisch
Posts: 25443 - Karma: 13,844
Haha, sad and true.
Sep 17 2008 1:36PM
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Tinga
Posts: 11349 - Karma: 2,333
anyone else concerned that insurance for almost 3/4 of the ski resorts in america could be in trouble?
Sep 17 2008 2:18PM
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jack_weisman
Posts: 2310 - Karma: 169
thats capitalism for you.
Sep 17 2008 2:23PM
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morocco_mole
Posts: 635 - Karma: 17
i thought this was gonna be something about random seaches of freeskiers for marijuana
Sep 17 2008 2:32PM
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currentwestman
Posts: 3292 - Karma: 330
yes. thats what stuck out to me. whats gonna happen?
Sep 17 2008 2:39PM
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eurotune2
Posts: 1450 - Karma: 10
thats what a corporation is, all the responsibility is carried by the stockholders who technically own the company, thats why top ranking managers in corps. get so corrupt the limited liability gives them the feeling of invincibility. But thats the way it is so we can either be one of those and fix it... or just deal
Sep 17 2008 3:25PM
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Pee_and_Ski
Posts: 1869 - Karma: 57
I saw on the news that the big auto companies are now asking for 25 billion in loans. our economy is so fucked up!!!!!
Sep 17 2008 4:00PM
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Literature
Posts: 13673 - Karma: 3,086
If I hear the word "conservative" applied to this administration, I think my head may explode.
Sep 17 2008 5:35PM
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[MEGAMO]
Posts: 1222 - Karma: 18
they should just move to socialism. it works for canada, but everybody in the us thinks its the same thing as commie russia. most of the world operates on some form of moderate socialism, its not a big deal
Sep 17 2008 11:10PM
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A_Davis
Posts: 601 - Karma: 21
Umm what most likely will happen is that the government will sell off Aig assets for way under what there worth to whoever is willing to take that risk.
Sep 17 2008 11:15PM
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spere
Posts: 6105 - Karma: 248
The reason they are bailing AIG out is because they provide insurance for so many other companies. If AIG goes under, tons of people will be fucked and it will be a much bigger problem than what has already happened
Sep 18 2008 2:50AM
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Flarestrike
Posts: 437 - Karma: 18
I don't get why the resorts jsut don't make every employee and every rider that goes onto the mountain sign a waiver stating that they are not allowed to sue for anything that may happen to that person.

Then there would be no need for this kind of thing to happen, stupid 21st century world where suing people is becoming like a sport
Sep 18 2008 3:00AM
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spere
Posts: 6105 - Karma: 248
you ticket is supposed to be that waiver, but lawyers have found ways around them and have no set a precedent that will be pretty hard to change
Sep 18 2008 3:02AM
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Flarestrike
Posts: 437 - Karma: 18
then the mountain should get a crack team of lawyers to go through the ticket waiver and find any loopholes and then sort them out...lathough probably easier said then done :P
Sep 18 2008 3:16AM
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Static
Posts: 8491 - Karma: 4,050
insurance is to cover their own asses, when the resort fucks up and someone gets hurt
Sep 18 2008 3:58AM
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-niko-
Posts: 68 - Karma: 128
And it is not only ski-industry you should be worried about. Your whole country is fucked.
Sep 18 2008 4:05AM
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Skibumsmith
Posts: 5414 - Karma: 11,608
We are so fucking fucked it's unfuckingbelievable. But if they are going to sell these resorts for cheap like the thread creator said everyone pool there money together and NS should pick one resort in the states and buy it.
Sep 18 2008 5:06AM
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Shpadoinkle
Posts: 10437 - Karma: 84
Chyea, the CEO's walked out with a hefty check. I heard someone say $100 million.
Sep 18 2008 3:17PM
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thegreyarea
Posts: 3265 - Karma: 34
There's no big fear over whether or not Stowe will be sold. It's not a threat to the town or its prosperity.

AIG's agreement w/the gov't is that it will pay off the 80% stake ($85 bil loan) w/the sale of valuable assets. Stowe invested near $200 mil in new expansions and is valued slightly over that of Killington, which sold at $85 mil a year ago (depending on when you start the fiscal year). Stowe's valuation above Killington's is based heavily on permits it already owns for future development. Housing in Stowe is still exceptionally valuable and sought after compared to the rest of Vermont.

At $85 mil, Stowe is worth nearly nothing to AIG except for the prospect of growth (which is extremely valuable). When companies divest, they divest struggling assets. Stowe doesn't fall into this category. Even if it is sold, someone will buy it under the stipulation that the $200 mil investment in the area must continue. The town of Stowe won't let someone purchase it w/o watching their backs.

There's no need to throw gasoline on a lit match. NS shouldn't be Fox News.
Sep 18 2008 3:30PM
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Shpadoinkle
Posts: 10437 - Karma: 84
The price per barrel has gone down, even with Ike.
Sep 18 2008 3:57PM
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NWFlow
Posts: 1557 - Karma: 61
^Gas prices are going down for now, but won't the struggling stock market drive up commodity (like oil) prices?
Sep 18 2008 4:26PM
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yelsel
Posts: 12967 - Karma: 3,451
i hate to say this but does it even matter what gas prices are doing if people dont have the money to even buy the gas?
Sep 18 2008 4:55PM
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yelsel
Posts: 12967 - Karma: 3,451
i hate to say this but does it even matter what gas prices are doing if people dont have the money to even buy the gas?
Sep 18 2008 4:55PM
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neon1peace
Posts: 998 - Karma: -1
I agree with that.

Even though I dont know much about economic systems, I do believe that some moderate socialism is the best option. If the US economy doesn't implement some kind of socialism soon Im moving to Canada. Even though Id probably move to Canada anyway cause of the skiing
Sep 18 2008 5:26PM
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thegreyarea
Posts: 3265 - Karma: 34
Did I miss your joke or did you miss mine?

Throwing gas on a match means there's no need to get overhyped about Stowe being sold.
Sep 18 2008 5:33PM
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SkierX
Posts: 16253 - Karma: 538
Yeah, how the hell did this get to talking about gasoline prices?!?!
Sep 18 2008 8:29PM
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Poppins
Posts: 440 - Karma: 30
you dont understand, ever since we let go of the slaves we have WAY more stupid ass people walking around. socialism wouldn't work because the lazy would stay lazy, and those who wanted to work hard to get ahead couldn't adjust to a socialist market. we are raised republican, believe it works, and nothing can change the minds of 300 million people.
Sep 18 2008 9:24PM
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dorikin
Posts: 1914 - Karma: 16
God damn you fellow fucking Americans. Why the fuck did you give those shitty sub-prime mortgages to lenders, among so many other things? Your ignorance and egotistical nature has caused so much undue harm. Unbelievable.
Sep 18 2008 10:12PM
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snowboardersrule
Posts: 1077 - Karma: 15
aig has a trillion dollars in assets globally. that means if they went under the fragile markets nationally and internationally would probably crash. that being said, the fed's government is a loan and, historically, it has been paid back. its $85 billion at %9 apr over two years in exchange for control of one part of the company and the head of the aig has to step down. plus, aig's insurance side of things is in good shape. so the government will mostly likely make money in the end.
Sep 18 2008 11:29PM
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*kiwiNZ*
Posts: 249 - Karma: 13
Dont worry the US borrows so much money from other countries anyway an extra $85 billion isn't going to make much difference. Its only an extra 1% on their debt.
Sep 19 2008 8:46AM
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thegreyarea
Posts: 3265 - Karma: 34
9%!? Even from the gov't, that's pretty low. You'd make more investing in the S&P 500.
Sep 19 2008 9:04AM
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dorikin
Posts: 1914 - Karma: 16
The way our economy is right now, I would take 9% if I could.
Sep 19 2008 11:27AM
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TheWorst
Posts: 7883 - Karma: 17
newschoolers should buy it and make it into an entire terrain park.
Sep 19 2008 3:31PM
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BEARS.
Posts: 5380 - Karma: 696
why the hell would an insurance company own an extreme sports center?
Sep 19 2008 8:47PM
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Malcolm
Posts: 15949 - Karma: 9,431
that would be fucking intense. stowe is just so fucking expensive though
Sep 19 2008 8:50PM
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comeatmebro
Posts: 10720 - Karma: 66
hah too bad the us might as well turn socialist.
Sep 19 2008 8:53PM
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