The $85 billion that the federal government spent saving AIG from sinking represents exactly $283 for every man, woman, and child in America. Every man, woman, and child in America was forced to shell out $283 because a private business made very bad business decisions.
It's one thing (although still not acceptable in my eyes) when farmers or airlines are on the verge because they can't compete in the modern world, and the federal government helps them out. It's a completely new level of government funding of poor private business practices and weaknesses though when the federal government saves a private business from it's own stupid mistakes.
UPDATE:
Looks like the new price tag is $700 billion... You just spent $2,333 because Wall Street financial tycoons were too greedy. Well, I've been bitching that the $700 billion we've spent so far on the 6-year Iraq war could have been better-spent domestically. Here's my reward.
(And yes... I'm well aware that the alternative not spending $700 billion, and doing nothing instead was likely much worse. Perhaps the 3,000 or 4,000 people who were making $3 million or $4 million per year off of these deals might be "encouraged" to kick in just a little extra instead. What ever happened to The Stupid Tax?)
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2 comments:
The question becomes with the rather large payouts the feds have been putting out to save a few different companies the last little while what this is going to do to the general economy.. getting that sort of money isn't going to be easy a good portion will have to be borrowed, which adds to the debt and affects general interest rates... and that affects pretty much everyone wanting to do anything involving loans for the ticket items that help the economy chug along... its going to be hard stateside... some people are already asking if the feds are bailing people out, who is going to help bail out the feds?
Gil
I have heard the same. I am not even close to being an economic major - so do not know if our governments response to this is good or bad (or even if it will work). This would be better if we at least had a government we trusted and respected - we do not, so we are relegated to "crossing our fingers" and hope that they are doing what is necessary to save our economy.
Yes, I really do feel that the people who created this mess - and did it knowingly should be held responsible. I have been reading about some of the practices of loaning to risky people and just can not believe what I am seeing. Giving an ARM loan to a person who is at risk, then letting them finance the loan with no money down and role all the fees into the loan - which makes the face of the loan more then the actual house - that is just so stupid. The people making the loan are at fault, the companies that bundled all those loans are at fault and (of course) the people who took out those loans are at fault. They all should be held accountable - and if any laws were broken, prosecution should be pushed.
Chief
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