The BBC is reporting that the United States Federal Government will grant a loan to AIG to rescue it from bancruptcy. I am a recent customer of AIG (car insurance specifically). Personally I like it. Socially though, what a disgrace. Can someone please point to the sentence in the United States Constitution that says a role of the federal government is to prevent a company from experiencing loss? I remind you that there are two imperative market forces in a free market. The obvious one is profit. We all want to make a profit. The not so obvious one is loss. The risk of loss is what keeps us from making overly risky decisions to make a profit. The federal government has removed that second force. Without it, we are better off as communists. From the article,
the secured loan included conditions designed to protect “the interests of the US government and taxpayers”
I didn’t know they make shovels that big to move such enormous amounts of b.s. I guess I owe the United States tax payers (and United States Dollar spenders due to the inflation tax) for keeping my premiums low.