Wednesday, September 17, 2008

Communism the new Democracy

Business that make bad decisions and investments are supposed to fail. That is how capitalism works. Money is supposed to flow to those who put it to the best means.

AIG Should Have Failed.

There is a world for a society where businesses are all controlled by the central government it is called Communism.

The only way to get rid of a bubble is to pop it....not blow more or fill up shirking ones with fresh air.

The entire system has now been destablized and what should be the final stretch is now going to be just the beggingign.

6 comments:

Rocketstar said...

they "say" that they had to do it to avoid the peril of the larger economy, but I don't know their specific reasoning.

It's all about free market when there is positive returns and total socialism when it comes to losses.

McCain has been on the Commerce committee for years, glad he/they were doing their job.

Tara said...

"The only way to get rid of a bubble is to pop it....not blow more or fill up shirking ones with fresh air."

True indeed Brian...true indeed!

JLee said...

It does seem rather strange...all the government interventions. Good points.

houstonmacbro said...

I agree with you! I feel that they should have let AIG deal with its own problems.

Questions:

1) Where is all this money coming from?
2) Will taxpayers receive any dividends once these companies start turning around?

Spirophita said...

I would argue that there is another way...to slowly deflate the bubble, instead of popping it. As we've seen in the airline industry, supporting it with government funds has not increased people's interest in investing in airlines--everyone knows it's a losing battle--but at least we can fly for a (somewhat) reasonable price still.

I don't agree with the assessment Re: AIG. There are some companies that are too critical--there has already been widespread panic, and for a market based almost solely on human perception of financial environmental conditions--you can't let it all go to hell and a handbasket. We'd all lose our retirement income if they didn't control the bleeding. The propping of these companies was more to ease the effect on the market (IMO) than for anything else. When people pull everything out of securities, that means city, state, govt bonds that this country needs to operate. Ultimately, they were protecting their own hinneys.

Brian in Mpls said...

If a company is too big or critical to fail then it should be broken up.

If we all did lose our retirement money maybe people would wake up and start asking questions, start to change things instead we move on with the status quo....