Here's the deal. As I write this the Dow is down about 23% for the year. Sixty percent or so since Oct. 2007. Pumping tax dollars into failed banks and insurance firms will not solve this crisis. Investors know the difference between buying bad, worthless debt and actual investment into a company. What these bailouts are doing is they are purchasing huge sums of bad debt hoping to quench investment fears. It's not working. AIG is beyond "failed." Unless they sell parts of their firm and restructure the chances of them recovering is zilch.
Then there are people like me who have mutual funds managed by AIG. I don't view billion dollar bailouts into AIG as a way of protecting my meager funds. I view it as a way of propping up very rich people who have done a terrible job of managing other people's money. If the government really wanted to spur investment, Obama would use the $40 billion to give every American a mutual fund account with AIG. That's what true investment is. Instead the president is using our money to give to very rich people so they can continue to piss away our retirements. It's that simple. Maybe they didn't teach Economics 101 in Obama's Harvard law class.
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When one man was contained and powerless outside his own country, he went after him and brought vengeance along for the ride. This is his story as only history can tell it.
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