Monday, March 2, 2009

More "Free" Government Money

"A revised bailout of American International Group may be just another "band-aid" solution, but more than five months after it was first rescued by the government the option of letting the insurer fail would still be considered too big a shock to already fragile global markets.
AIG's board on Sunday approved a broad revision of the U.S. government's $150 billion (105.6 billion pound) rescue. It was the third time the government has reached out to the struggling insurer and the latest rescue is expected to put greater funds at AIG's disposal to keep it afloat..."

What is actually being done and said in this "crisis" situation is equivalent to continue giving someone with a gambling addiction more money in hopes that they will eventually hit it big enough that their gambling problem vanishes. Sounds absolutely ludicrous doesn't it, but that is exactly what is being done.

I realize that there is a problem, but it is constantly being made worse by doom and gloom naysayers (Obama being at the top of this list). However if left to its own the market will stabilize. Their will be businesses that fail, but the business environment is like a forest, just because the ancient oak falls does not mean the rest of the forest is destroyed, but what will happen is the ancient oak will fertilize new trees and plants when it decomposes. In other words businesses that fail will open the door for new ones, that have better management strategies to step up.