Morning scratch
Bail out AIG! I disagree with John McCain that it had to be done. This same government that is bailing them out is the one that let them to get into trouble. AIG was allowed to acquire smaller companies and their problems to the point where they had no capital to work with. The sick part of it is that it was all done by and for investor greed. I say let the investors, small and large, lose their asses. The late Bob Neyland, head coach of the Tennessee Volunteer football squad said of the forward pass; "there are three things that can happen, and two of them are bad". The same can be said about corporate investing. You either make money, break even, or lose money. I would rather spend my money on illegal dope; at least no one can take that buzz away from me.
If the bailout didn't happen, what would have? The entire country would have been economically brought to its knees, and it could never recover under the present system. Is that bad? Of course it is, but whatever came out of it would be different because something like Teddy Roosevelt's trust busting laws would have to be enforced. If these laws weren't enforced, we could not stand as a market driven nation.
In my opinion, large scale stock trading should be banned. It serves only to make the rich richer and the poor poorer. A lot of people think that the phrase "free market economy" is about the stock market. Absolutely not! It is buying and selling lawful services, goods and commodities without government restraint. It is good old supply and demand. It works when it is allowed to.
BTW, I suppose you know whom has to pay for this bailout. You, me, and every other tax payer in this country, even if we have never owned a share of stock in any company. We borrow from the World Bank, with no way to pay for it except through higher taxes.
I realize all I've said is simplistic and covers very little of the real problem, but it does say there is a better way.
2 comments:
I think they should have let it fail and let the "free market" decide how things work out.
All these people saw their bank roll grow at an insane speed and thought it would never stop.
I think if the economy failed or went into a real depression we would have come out of it a much healthier country. It would have been painful and may still get that way.
Here is Bank of America buying the "bull", which they didn't need. Isn't it funny how a company's excess money gets drained off by the CEO's, too many bad acquisitions, and big investor's bad decisions.
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