Your Worthy But You’re Not Worthy

J.J. Jackson* | September 18, 2008

Filed Under Economy / Economics, The Economy, Unconstitutional Spending

Once again the federal government is picking winners and losers, this time with a bailout of financial firm AIG. Apparently AIG is in the realm of those considered “too big to fail” just like Freddie Mac and Fannie May. But Lehman Bros going bankrupt in the largest such filing ever wasn’t seen as such.

Sept. 17 (Bloomberg) — The U.S. government took control of American International Group Inc. in an $85 billion bailout to prevent the bankruptcy of the nation’s biggest insurer and the worst financial collapse in history.

The Federal Reserve will provide a two-year loan, take 79.9 percent of the New York-based company’s stock and replace its management because “a disorderly failure of AIG could add to already significant levels of financial market fragility,” according to a statement by the central bank late yesterday.

AIG unraveled as the worst housing crisis since the Great Depression led to more than $18 billion of losses in the past year. A meltdown could have cost the financial industry $180 billion, according to RBC Capital Markets, because AIG provided insurance on more than $441 billion of fixed-income investments held by the world’s biggest institutions, including $57.8 billion in securities tied to subprime mortgages.

Forget the obvious fact that government has no authority to do what they are doing. I want to address some other points.

The “worst housing crisis since the Great Depression?” An interesting take to be sure. By the sounds of things, you might think that the entire housing market is collapsing because people are unable to pay their mortgages in droves. However that is hardly the case and comparing this situation to the Great Depression is like comparing a man with one apple tree that didn’t produce fruit this year to another whose entire orchard failed.

The facts of this “crisis” are clear. Government got involved and strong armed lenders to loan money to bad risks. President Jihmay Carter got the ball rolling. Then a couple of Republican presidents in Reagan and Bush did nothing to end it. Then under President Clinton the program to force banks to loan to bad risks was beefed up. Then President George Bush failed to do anything about it. Congress however is not blameless either. Remember – they make the laws. Nor are these mortgage and financial giants who let the government bully them into making bad choices with the money entrusted to them.

Isn’t it great to know that government is smart enough to know who needs a bail out and who doesn’t? Hey, you didn’t get tax payer dollars to help when your business failed Lehman Brothers? Stop you’re whining! Government is smarter than you and has deemed you not worthy enough.

I say LET THEM ALL FAIL! It is the only way to correct this problem caused and promoted by government. If government keeps handing out tax payer dollars and mortgaging our future to bail out failed businesses then more bad and unwarranted risks will continue to be taken, more failures will happen and more hands will be outstretched.

Ultimately it will be the American taxpayer that is screwed.

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