Axis of Right

Three Native Rhode Islanders Commenting From the Right on Politics and Anything Else

Posts Tagged ‘Federal Reserve’

AIG Bailout Shortens Path to Socialism

Posted by Sal on September 17, 2008

The AIG bailout by the Federal Reserve involves the FED “loaning” AIG $85 billion in exchange for nearly 80% equity in the company.  Now, it is within the Fed’s charter to loan money;  however, the fact that the Government has now nationalized a major private insurance company (although the Fed denies that this is what was done) is tantamount to socialism.  There seems to be a gradual move for the government to take over these large companies and run them, when it was government “oversight” and regulation that caused this crisis to begin with.  There is simply no legitimate reason that AIG should have this and not Lehman Brothers.  The move is may have been necessary from a practical standpoint, as the failure of AIG would probably have caused several other major U.S. companies to fail as well, but it is a dangerous road we as a nation are embarking on with this new corporate socialism.

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