Wednesday, September 17, 2008

Federal Government Nationalizes Insurance Company

With a tactic reminicent of Venezuela instead of the U.S.A., our federal government effectively nationalized its largest insurance company, AIG. In exchange for an $85 billion bridge loan for 2 years with 8.5% interest, we the people got an 80% equity participation stake in a once public company.

We have no business doing this. I don't care what the implications to the financial markets might be. Like Chrysler before, now we are saying that AIG is too big to fail. Let me assure you, AIG has a tremendous amount of assets that could be liquidated rather quickly to fund any short-term liquidity problem.

They passed on Lehman, but pulled the trigger on AIG...what's the logic in that? Our federal government is stacked and controlled by to few "fat-cats", and it's well past time to clean house.

This is not representative of our free market economy. It is representative of a totalitarian economy.