Monday, March 16, 2009

ECONOMY - Example of Old Adage NOT Headed

"AIG, outside of capitalism's reach" by John Aravosis (DC), AmericaBlog

From Robert Reich:

Had AIG gone into chapter 11 bankruptcy or been liquidated, as it would have without government aid, no bonuses would ever be paid ... indeed, AIG's executives would have long ago been on the street ... This sordid story of government helplessness in the face of massive taxpayer commitments illustrates better than anything to date why the government should take over any institution that's "too big to fail" and which has cost taxpayers dearly. Such institutions are no longer within the capitalist system because they are no longer accountable to the market.

And the Old Adage? "Don't but your all your eggs in one basket."

This entire Wallstreet meltdown is because we did not head this adage. Freddy Mack & Fanny Mae holding 50% of the mortgage market, Citibank holding so much of our national (and worldwide) wealth, AIG and all the rest.

On top of that, the GOP mantra of No Regulation.

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