Just Because I Agree Doesn't Mean I Like It

I was in favor of, and still support the government bailout of AIG. The company was just too large for the economy to handle its collapse and the effects would span the globe.

But, this has gotten out of hand. In the last year our government has purchased three major mortgage holders and the world’s largest insurer, which includes numerous other assets.

This is in direct conflict of free market economy theory since a government should not nationalize or favor a private company in any way. It is a dangerous mixture of power and human greed that cannot be trusted. The temptation to abuse the power of one for the gain of both is too great.

Government concerns laws and the upholding of those laws. Not in business for profit, I’m not against the idea as a whole, but our current economic model has nothing in place to protect against rampant corruption.

Another problem now that we own IndyMac, Freddie Mac and Fannie Mae is that the government will ultimately have to make the decision of whether or not to kick people out of their homes. A government is supposed to protect and help provide for its people, not turn them out on the streets.

Further, the financial gains that were made during the good times of these businesses were all private. Individual shareholders and executives made lots of money. But when the problems came for these businesses and they failed the losses became socialized.

We can’t have national healthcare but we can socialize the failures of private business?

The problem, again, comes to greed. It is the monumental flaw of the free market model. I know that it is a sin to say that capitalism is flawed, but let’s be honest, there are myriad flaws in this futile experiment.

The executives are not getting punished for their greed, in this instance there were bad loans made that should never have been made. Both the masses and the corporations are to blame, but we’re paying our debt. It’s our tax payers who saved these businesses from utter failure. What punishment was received by these execs?

This sends a signal that you can take over a company, bleed it dry and it will still be saved and you can simply move on. I’m not accusing AIG of this per se, but I certainly don’t think AIG is an innocent victim here.

A big problem with the corporate structure is that executives make far too much money. Bloated expense accounts and ridiculous salary and incentive packages fuel the greed that fuels these failures.

Our economic system must be overhauled and it needs to start at the top. I don’t want guinea pigs or examples, I want it to change for the better. Unfortunately, I just don’t see anything changing right now. We seem to demand complete catastrophe before we decide to change.