What would happen if the Government could no longer afford to bailout AIG?
Answers
457 points
SallyG answered 9 months ago …
I have no idea. However, I am really tired of government spending taxpayers' money to keep bailing it out. Some serious restructuring and oversight is long overdue, IMHO. (I read somewhere that there is a bankruptcy clause in the Constitution, but not a bailout clause. Flippant, perhaps, but capitalism works only if the best and most responsible survive and the incompetent or overly greedy are allowed to fail.)
All the above said, I like the quotation that says "Capitalism WITHOUT HEART is evil." [emphasis added]
We do, indeed, live in interesting times.
265 points
fuzball answered 9 months ago …
If the Fed comes to realize it can no longer bail out AIG, they knowingly took on more than they could reasonably handle, they will become subject to some very angry people in Congress and by us taxpayers wanting to know why all that money went down the drain. WE didn't have all the facts about AIG's actual financial condition and their astronomical debt load but the FED did. No one in their intelligent right mind would have attempted to try to revive that ZOMBIE, except the FED who seems to be acting in pure PANIC and could care less since WE pay for it. Time for taxpayer REVOLT!
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