AIG just got an $85 Billion dollar loan from you and me.
In a bid to save financial markets and economy from further turmoil, the U.S. government agreed Tuesday to provide an $85 billion emergency loan to rescue the huge insurer AIG. The Federal Reserve said in a statement it determined that a disorderly failure of AIG could hurt the already delicate financial markets and the economy.
It also could "lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance," the Fed said.
"The President supports the agreement announced this evening by the Federal Reserve," said White House spokesman Tony Fratto. "These steps are taken in the interest of promoting stability in financial markets and limiting damage to the broader economy.
The Fed said in return for the loan, the government will receive a 79.9 percent equity stake in AIG."
Dear Uncle Sam and Mr. Paulson,
Would you please do us plebes a favor and stop spending our money to prop up businesses that have made very poor business decisions. The American people can no longer afford to bail out mismanaged business in this country. Yesterday it was Freddie and Fannie and today it is AIG. Who will it be tomorrow? The airlines? The automakers? What about us little people who will be stuck paying this bill?
You seem to think that these companies are too big to fail. Well, us guys on the bottom are too little to fail. We are swimming in your red ink, and quite frankly we are drowning. We cannot pay the enormous tax burden you are foisting upon us and our children. We cannot weather the storm of looming inflation.
Your financial house of cards is coming undone and you are ultimately making us suffer for it. We send our kids off to the Middle East for you, and now you are raiding our bank accounts and our retirement plans and mortgaging our future. We have nothing left to give. This madness must end now.
The heads of these companies that you are propping up should shoulder the cost - take from their bank accounts and their retirement funds - not ours. Make them liquidate their assets. Make them sell their corporate jets and expensive Armani suits and BMW limousines. Make them go to jail for fudging their books and doling out loans that should never have been granted in the first place. Make them responsible for what they have done to the financial market in this country and globally. Make them liquidate their bad debt, renegotiate terms and take care of their own business. Please don't further enslave us to more government debt and deficit spending. We just can't do this anymore.
We the people do not want government takeover of private business. We don't want redistribution of wealth. That is Socialism. That has no place in this country. We don't need more regulation. We don't need platitudes. We need the people who created this mess to take the responsibility to deal with it and not pass it along like another bad debt.
The bailouts must end. Otherwise, who is going to bail out the taxpayer?
We The People