Frankly, it's about time the goverment stepped in to an economy that cleary operates best when left alone. (I hope all readers detect my sarcasm.)
The private sector's blatant lack of care for Lehman Brothers tranlates over to the certain refusal to help AIG, the nation's largest insurer. So, rather than help out a vital company, private funds remain in the hands of the elite - once again.
The Federal Reserve Bank of New York was authorized to lend the borderline-bankruptcy company a staggering $85 Billion loan to keep it alive, and all the protections that taxpayers and the government at large desperately need.
NOW do you really think that a laissez-faire attitude towards big business is really going to get anything done?
Two Things
34 minutes ago
2 comments:
While I agree that it was a good thing that AIG was rescued and that more regulation is needed in the banking sector right now, it would be foolish to start over-regulating. If these banks weren't so huge and their collapses so damaging to the economy, I would let them fail; you cannot make bad decisions and expect to survive. Obviously, it was necessary in the cases of AIG and Bear Sterns, but these were the exception, not the rule. To make it the rule would be most unwise.
While it was a good strategical move to bail out AIG and Bear Sterns, the economy will have its own ebb and flow - times of prosperity and times that are difficult. When the banks and Wall Street are doing well, no one would ever think to criticize or regulate them, it's just now when things are taking a turn that everyone is up in arms. It's not fair to have such a double standard. Either we want to regulate the economy, or we don't. Obiviously, in dire circumstances there are exceptions, but I think that the economy is a cycle and generally things will play out as they are supposed to.
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