A little while ago I got a release from Jim DeMint that said in part:
Americans should be very concerned by the size and frequency of these government
Well, I am, Jim — I am. And I’d really like to see someone give me an intelligible explanation of why it was important for me, as a taxpayer who’d rather see his money spent on Iraq or universal healthcare, am bailing out yet another private company.
First Bear Stearns. Now AIG. Presumably, this was another company "too big too fail," which evokes the obvious response, "evidently not." Let’s see — we had to bail out Bear Stearns (and I still don’t know why). We didn’t have to bail out Lehman; we let that go into bankruptcy (another form of relief our government offers). We let the marketplace deal with Merrill Lynch — specifically, another private company bought it. And now, ta-da!, another private company is buying Lehman. The market at work, one would think.
So why AIG? I get Fannie and Freddie; as little as I understand about High Finance, I always understood them to have a special relationship to the government. If nothing else, you couldn’t let them go under for the same reason a Mob boss can’t let a made guy get whacked without doing something about it. You lose respect, both on your own turf and abroad. You gotta do something; you got no choice.
But why AIG? I don’t get it.