Wednesday, September 17, 2008

Fed Bails Out AIG to $85 Billion

I didn't have time to post this last night, but I'm sure you're well aware in any case. The rapidly crumbling AIG was finally rescued by the Fed, with an $85 billion loan and a 79.9% stake in the company. It was certainly a drastic move, considering the company's beating on Wall Street yesterday.

Have you noticed how rapidly the government has been gobbling up the financial sector of this country? Did we suddenly embrace Moscow-style socialism? Should I be worried about this, or merely breath a sigh of relief because we were bought a little more time?

In any event, allowing AIG to go bankrupt would have disastrous consequences. It may turn out that bailing them out will prove equally disastrous. But at this point, I really see no alternatives. The biggest problem with all these buyouts is that the taxpayers are left with the bill. We will have to pay for all of Wall Street's reckless gambling losses.

There's another serious problem as well: the debt. Thanks to Bush and the Republicans, we are staring at $9.5 trillion of debt. This is absolutely crippling. We can't keep doing this. This nation simply doesn't have any money to throw around recklessly. Sooner or later, something has got to give. We cannot buy our way out of this mess. What that means, honestly, is anyone's guess. And that's why everyone has been in panic mode this past year. know what would really go down great right about now? Another war! And more tax cuts! Let's talk about pregnant teens and lipstick some more! Yay!

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