In another shockingly stupid decision, Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke bailout American International Group (AIG) to the tune of $85 billion.‚ Essentially what this means is that instead of the business managers and shareholders who made poor investment calls having to pay for their mistakes, these people who made dumb moves get to keep their profits while the ordinary american
taxpayer is left holding the bag.‚ Paulson and Bernanke have shown themselves to be quite the pair of goons when trying to deal with the various market crises.‚ These two men have forgotten about the fundamental principle of free markets: the markets themselves will make the best decisions in the end.‚ Now that Paulson & Bernanke have stuck their slimy hands where they didn’t belong, the markets are going to EXPECT that the federal government will bailout them out of their future poor decision:‚ which will lead to more bad loans being made and much more risk being taken on by the management of major corporations.
On another note, the SEC just issued rules that restrict the practice of short selling.‚ Another Bush peon, SEC Chairman Christopher Cox (below left) said, “These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling”.‚ This nincompoop needs to be fired.‚ The SEC is trying to kill a symptom of the markets problems instead of addressing the problems themselves (poor reporting, terrible regulations and government bailouts of bad companies).‚ Andy Meade had a good comment on this, “Hey, this will solve all the market’s problems: just don’t let anyone sell their assets!” LOL
While America’s military is off fighting and dying for freedom in Iraq, our politicians and appointed leaders at home are stealing our freedom at home.‚ Paulson, Bernanke, Cox and Bush have done more to destroy free markets and free trade in the United States than any terrorist could ever have done.‚ Why are these evil men destroying our freedoms and bailing out bad companies like Bear Stearns, AIG, Freddie Mac & Fannie Mae?‚ Because the election is in two months.‚ Paulson & Bernanke are trying to make sure that their political puppetmasters stay in power by preventing the natural bubble-bursting of the market before November.‚ This is why communism doesn’t work- when you give people the power to intervene in the markets for “the public interest” they just end up intervening in the markets for their own interest.
Welcome to the Communist States of America. Feel free to forget about your freedom.