Rich Bailed Out By Gov’t Again!
Only in America!
Once again the government has stepped in to bail out the rich. Last week they bailed out Fannie Mae and Freddie Mac after investors refused to step up to the plate and help the companies. I addressed that in a post entitled The Government Owns Your House. Now, in the latest financial news, the government has stepped in to bail out an insurance company. That’s right folks! Once again the government is spending your money to bail out the rich simply because the rich refuse to lose any of their ill-gotten gain dollars. So, not only does the government own your house, but now the government also owns 80 percent of the company that insures that house! Of course as a spin out of the insurance company, the government also has a stake in your car, your motor home, and whatever else you might have insured through AIG.
When will this madness stop?
The latest government bailout of the rich was announced by the Federal Reserve last night. After AIG investors, insert definition — the rich who don’t want to lose their money, but have no worries about sticking it to the little guy — said they refuse to put money into the company they invested in, the government announced it will provide up to $85 billion dollars to bail out the insurance company. AIG ran into hard times when the subprime mortgage market started falling because banks connected with Fannie Mae and Freddie Mac started having issues. As a re-cap, lets not forget that the banks, as well as Fannie and Freddie caused those problems because they were giving money to anyone and everyone who asked.
Now, coming on the heals of that, AIG is having issues. But, the investors who are the so-called risk-takers, decided they did not want to put any of their own money into the business to help out. In other words, the very people who pretty much own the business, said they do not want to help the company they own get out of debt. Isn’t that amazing!? The rich, who own the company, don’t want to help the company. How crazy is that?
Think about the little Mom and Pop shop down the street from you that went out of business because they couldn’t make ends meet. Did the government come in and bail them out? No! How about the local businessman who had to claim bankruptcy because he ran out of money to put into his business which over-extended itself. Or, how about the businessman who made a series of bad decisions and suddenly finds himself closing his doors because he couldn’t pay the bills. Did the government step in? No!
This being the case…why does the government reward the rich AIG execs?
In deciding to use taxpayer money, that would be yours and my money, to bailout AIG, the federal government said the collapse of the company could have hurt the financial markets and the economy. While that may be the case, the bottom line is this — AIG execs, as well as Fannie Mae and Freddie Mac execs, are greedy – and once again, the government says the rich are more important than you and I. In the midst of this bailout, the accidental Governor of New York State, David Paterson, said he’s in agreement of the bailout. The accidental Governor went on to say it was needed because AIG impact stretches throughout the country into our homes, small businesses and our cars. Of course I put little to no stock in what Governor Paterson says. After all, this is the same guy who just sold the New York State electric company to a company in Spain.
What’s the bottom line of all of this? It goes something like this — The government owns your house and also owns the insurance company you might use for your car, for your house, and anything else you might have insured.
In other words, if you have an insurance claim who are you gonna call…
FEMA!
It’s time to stop the madness and start making the rich investors who are greedy and getting rich off of our backs, to take responsibility for faulty investments. Last, but certainly not least, if you live in New York State, you will pay your utility bill in pesos now too.
Just my two cents,
Dr. Rus
it’s hard to object to the government’s mass bailouts from a historical standpoint since similar debt-producing methods were put into action to save the U.S. from the Depression; maybe we’re really socialists at heart and don’t want to admit it…