Thank you, Mr. Paulson. May I have another?
When I was young, I learned that you should never feed a dog from the dinner table because as a result, it will always be there begging for more. Three weeks ago, in order to prevent a collapse of the world's sixth largest company, the Federal Reserve bailed out AIG with an $85 Billion loan. Just like a puppy that was fed from the dinner table, AIG has returned to ask the Fed for an additional $37.8 Billion of "much needed cash." You got what you asked for, Mr. Paulson - the biggest corporate welfare program in history.
When the market gets wind of possible intervention, like a bailout, it siezes to solve its own problems in anticipation of what the government can provide. How do we expect to solve the problems of greed and bad financial behavior when we don't let the market correct itself. Sometimes, we as humans need to fail in order to learn how to succeed. - both as consumers and as corporate citizens. Many economists feel that we should let institutions fail in lieu of any bailout financed by taxpayers. I thought this bailout was supposed to stop the bleeding? The DJIA has dropped over 10% since the bailout passed and we are still hearing about businesses not being able to get credit for payroll and inventory. Since when did businesses become dependent on credit for things like payroll and inventory anyway? Maybe because there is so much credit available because of low interest rates and the weak dollar. What happened to good-ole fashioned organic growth from, I don't know - profits?! Our government is making us lazy.
When the market gets wind of possible intervention, like a bailout, it siezes to solve its own problems in anticipation of what the government can provide. How do we expect to solve the problems of greed and bad financial behavior when we don't let the market correct itself. Sometimes, we as humans need to fail in order to learn how to succeed. - both as consumers and as corporate citizens. Many economists feel that we should let institutions fail in lieu of any bailout financed by taxpayers. I thought this bailout was supposed to stop the bleeding? The DJIA has dropped over 10% since the bailout passed and we are still hearing about businesses not being able to get credit for payroll and inventory. Since when did businesses become dependent on credit for things like payroll and inventory anyway? Maybe because there is so much credit available because of low interest rates and the weak dollar. What happened to good-ole fashioned organic growth from, I don't know - profits?! Our government is making us lazy.
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