10 October 2008

Bailout = No Accountability

Not less than a week after having benefited from the massive bailout, American International Group's insurance subsidiaries held a lavish retreat at St. Regis Beach Resort for executives, spending $440,000 on rooms, banquets, and golf. AIG, in hot water now that they're being scrutinized by the Committee on Oversight and Government Reform, released this statement:
This type of gathering is standard practice in the industry and was planned a year advance of the Federal Reserve's loan to AIG. We recognize, however, that even activities that have long been considered standard practice may be perceived negatively. As a result, we are reevaluating various aspects of our operations in light of the new times in which we operate.
Nice to know this is what the American people are paying for, directed by our congressmen.

Meanwhile, the DOW continues to drop (nearly 700 points yesterday), and the global financial system is heading towards inevitable collapse. One report seems to understand:
But whatever the reasons for the late-day plunges, what is driving the market down is a lack of confidence by investors, who are skeptical that the many measures taken by the government to rescue the financial system will work. Moreover, they worry that the government’s trotting out a new initiative every day or two is a sign that maybe the situation is worse than many thought.
My representative voted against the bailout both times, God bless him. He, like some others wiser than the average congressman, understands the bailout is (1) immoral, (2) unconstitutional, and (3) bad economic policy. Obama styles this crisis the fault of free-market capitalism (utter bosh) and McCain, though formerly a champion of deregulation, voted in favor of government control in this case (and, disappointingly, when Senator Biden challenged Governor Palin during the debate on this point, instead of defending the concept of deregulation, Palin defensively brought up examples of how McCain supported government regulation in the past--demonstrating that she doesn't quite know whether she is a conservative or not). Even the editors over at National Review aren't too happy with McCain's new plan to give reckless lenders a free pass.

If the twenty-nine year-olds driving Maseratis on Wall Street had taken the fall and gone bankrupt, as they should have, rather than being rescued by the American taxpayer, I doubt they'd be getting massages at lavish beachside resorts...

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