Wednesday, September 17, 2008
AIG Bailout
One day after Palin spoke publicly to the US on the matter of America's economy being in shambles, the Federal Reserve granted a loan to the American International Group for a grand lump sum of 85 billion dollars, not what you would necessarily call "chump change." Foolish moves by the American government are worsening the economy day by day. All surrounded are subjected to this as we see in another declining day on wall street. The Dow Jones dropped a staggering 449 points, its lowest since November of '05. Money is quickly being lost by all and the mayhem will be sure to follow. America needs to wake up and face reality because we are quickly falling off the boat.
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2 comments:
What's the problem at the base of this? What other choices ought we to have made?
It's a complicated issue, of course, but here's a simple answer which I like:
[quote]
I think I get the general idea: Big money bet and sold guarantees that housing prices wouldn't fall. They lost the bet.
Here are some general principles I'd bet on:
If government lets a business get so big that its failure would collapse the economy, government will bail out the company in hard times.
Therefore,
Either government must prevent companies from growing too large or government must regulate companies to prevent them from taking too much risk.
[/quote]
http://voices.kansascity.com/node/2088
Now, that's obviously an incomplete view of the situation, but it seems to me to make a good point anyway.
What do you think?
To ensure that we still maintain a free market, there should be a limit to how large companies can get. I happen to believe that it no longer becomes a free market when you have companies that are larger than the federal government. By this I mean that the profits of these companies are equal to or larger than what the federal government takes in. Maybe they should be the one who should take care of some of our national debt. It seems that they should do something being that so many of them are headquartered in the US right? Michele
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