Government failure in progress! Obama-ecnomics in action...

[Andy]

AIG Facing Possible Breakup

"If the government lets AIG fail, I think you are going to see an enormous sort of shock wave across all industries because AIG had their finger in a lot of different areas," said Russell Walker, a risk management professor at Northwestern University in Chicago.

Now, let's think this through a little bit...

The liberals, including Bush, and of course the entire new adminstration, claimed that if AIG were to fail, it would be apocalyptic in nature. It was the end of our entire financial system. It could end our republic as we know it.

That was the rational for the bank bailout to begin with. So the government bailed them out... supposedly and held back the dooms day.

So, the government purchased an 80% stake in AIG, and loaned it $122 Billion. But that didn't help. So a restructuring is going to now pass that will push the total amount of money given to AIG will be $150 Billion.

Not to put that in perspective, the entire budget for 2008 Global War on Terror, including Iraq and Afghanistan, construction, soldiers, equipment, and other anti-terror support activities... was only $145.2 Billion.

One single bank.... $150B
Entire 08 GWOT budget... $145.2B


Now to the main point...
What are they going to do to AIG? Break it up! When do corporation break up in our regular economy? When they go bankrupt! So now, we've spent $150 Billion dollars, more than the GWOT budget last year, to do what would have happened if we hadn't spent a dime.

And now... a word from Obama:

Obama said the $700 billion bailout bill passed by the U.S. Congress had helped stem the financial crisis, even though the $300 billion already spent may not have had visibly positive effects.

"I think ... part of the way to think about it is things could be worse. I mean, we could have seen a lot more bank failures over the last several months," he said.

We have elected a complete idiot.

 

[chestnut]

Andy,

Remember, Obama never once owned or ran a business. He has virtually done nothing to help him have any sort of understanding of what is happening.

He simply doesn't possess the "real world experiences". It's evident from his actions.

 

[Andy]

Although typically I would support some real world business experience, I don't think it's actually a requirement.

Rush Limbaugh doesn't have business experience, but yet knows how economics works.

What is more important, is a basic understanding of history and economics. Something that Obama has neither of. The fact all of his policies have been tried before, are not new, and do not bring hope, is proof is his utter incompetence.

The other possibility is that he is a truly horrible person that knows all his policies will fail, which is why he's trying to push all of them through as quickly as possible. Not so that things will improve, but so that government will gain more power.

Ultimately socialism is cruel and evil. Typically most socialist know their policies don't work. The reason they push for known failures is because doing so results in more government control. That's the real goal. Positive and Negative effects are irrelevant.