AIG May Fail Costing Taxpayers $123 Billion
October 24, 2008
News that financially-strapped insurance firm AIG has spent three-quarters of its $123 billion loan from the government paying off bad investments is followed by a statement from the firm's CEO that the $123 billion may not be enough to keep the company from failing.
Supposing that the firm does indeed become insolvent, it will be a loss of $123 billion of taxpayer dollars, unlikely to be recouped since the assets of the firm would be sold off to pay creditors.
We would like to remind everyone, especially those in Congress who voted for all of the bailout packages, that businesses, no matter how large, come and go and to artificially influence a free market is inviting financial disaster by either rewarding bad choices or sacrificing taxpayer dollars; the proverbial throwing good money after bad.
This election day, let's elect people who know the role of government is to remain as hands-off as is possible, not to micromanage every detail of the world.