Feds bailout AIG; who is gonna come rescue me?
Eighty Five Billion dollars. I can't get my mind around a number that big. But Uncle Sam just shipped all those dollars into the coffers of AIG in an attempt to prop up the failing insurer and prevent a collapse of the financial markets. They didn't bailout Lehman Brothers; their management and shareholders made bad decisions and they are being forced to pay the price. That lesson is now lost in the shuffle by this latest action.

Is nobody allowed to fail? The government rushed in to Texas to save people who were too stupid to heed the hurricane warnings and follow the instructions for mandatory evacuation. What part of "mandatory" did they not understand? If it was up to me I'd leave them to their own devices; it would serve them right. But there's Uncle Sam, rescuing these people from their own stupidity.

Now The US taxpayers effectively own the world's largest insurance company because it's management made bad decisions and invested unwisely. We're on the hook for their crummy loan portfolio and shaky bond guarantees. I was never told me that the duties of citizenship included preventing supposedly savvy investors from losing their shirts. It's socialism, pure and simple -- Uncle Sam (much like their Mommy I guess) will wipe their noses, pat them on the head, tuck them into bed, and tell them things will look better in the morning.

Life involves risk. If the government will guarantee us against failure, what will stop people from engaging in riskier and risker behavior? Nothing that I can see. Instead of bolstering confidence in the market this takeover will probably embolden the financial whiz kids to engage in even wilder and more outrageous schemes. Why not, Uncle Sam will be waiting with a blank check if things don't work out the way they projected.

I just wish that some of the socialistic concern for everyone's well-being trickled down to guys like me. You know, people who live responsibly, pay their taxes and their mortgages, didn't incur massive debt, and don't choose to ignore clear signs of impending disaster (natural or otherwise). Who is looking out for me?

Posted at 11:20 by Chris   []   | | | Email | del.icio.us | Digg | Stumble It! | Reddit | Link