Federal Reserve Finances Bailout of AIG

America, land of capitalism, high finance and government bailouts. The Federal Reserve today has agreed to an unprecedented bailout of the mega insurance corporation AIG, American International Group Inc. The Fed will finance a bailout of AIG by loaning the insurance giant $85 billion and taking a 80% stake in the company.

Why should the Fed finance a bailout of AIG? Good question, AIG is an insurance company and does not even fall under the jurisdiction of the Federal Reserve. Since the Federal Reserve is a quasi government agency that does not answer to Congress or the President they can do pretty much whatever they want, including have the treasury print up $85 Billion dollars for them to loan to AIG.

In the last week we have had Fannie Mae and Freddy Mac bailed out, who will we finance next? Is AIG the last one or are there more to come? Is this what capitalism is really all about? What about risk and reward? The Progressive Liberals like to point to these situations and use them for examples as to why capitalism does not work. Then of course they call for investigations and more government regulation in order to make "the system" work better.

I remember reading that one of Bill Gates' goals was to put a computer on every desk and in every home. I don't see how he managed to finance and run Microsoft without the governments help. I mean, how can a business succeed without government regulatory oversight and taxpayer funded earmarks? Now I don't know much about this Bill Gates fellow, but all I can imagine is that that pipe dream probably went up in smoke, how could he have possibly succeeded without our governments help?

Yes, we are in a sink or swim mode at this point. A week ago almost every financial guru in the media was saying that the markets may be volatile, but there is not much to worry about. This last weekend the talk was of another great depression. We can only hope at this point that AIG is the last bailout the government needs to finance in order to keep us from that "great depression."