Unless you live under a rock you have no doubt heard about AIG and most recently the bonuses that are being issued to the company’s top brass. Yes ladies and gentlemen the same guys that caused the problem are now being rewarded with more money than the average American can possibly appreciate. The same Americans that are funding this bailout, if this doesn’t sicken you I am not sure what will?
So why would the government not have better control over this process when issuing checks for billions of dollars and in this case 165 Billion dollars. Maybe the better question is why is the government getting involved, do they know anything about insurance, why would they stop a company from failing? The short answer is AIG is way too big, they insure almost 30% of the American population and do business in over 110 countries. Apparently the US government had to bail them out, or did they?
Is loaning money really the answer, isn’t this what got everyone into this mess? This entire recession or soon to be depression was caused by overuse of credit. Everyone was borrowing money to buy things and eventually using equity in their home which of course had an inflated value to borrow more money. When the bubble burst, the mortgage and lines of credit were worth more than the value of the home and presto you have a major economic crisis. Here is the problem with what we are doing to solve this problem, the government is borrowing even more money to fund these major screw ups in the business world. Banks that made bad decisions are being bailed out with borrowed money from the US government, this is the part that really scares me.
At the end of the day other countries are loaning the US money and when things become really bad and they will not only is the US going to sink like the Titanic it will bring down any other country, company or investment portfolio that invested into it. I truly believe at this point we need to let the US fail and any other country needs to avoid it like the plague. The US will rebuild and be stronger than before I really do believe that, they need some time to think about the mistakes they made and any other country or investor needs to steer clear of them for the time being.
If you look at history the great depression started off as a recession and then there was a small rebound as we are seeing right now. What followed was a large stimulus injection from the American government, I really do hope history doesn’t repeat itself. Sadly it appears as though there are similarities.
This article was written by Shawn Wilson, a member of the customer support team at Datepad, where we always offer free internet dating. Datepad has a massive directory of informative free dating articles along with a great list of dating site reviews on our dating blog.