AIG Bailout Opens The Floodgates
Article by Ed Campbell, III
Wednesday, September 17, 2008
Last night the government of the United States acting through the Federal Reserve officially drove the final nail in the coffin for free market economics in this country. And so marks an extremely sad day for the U.S. economy. It was a mistake to bail out Bear Sterns. It was a bigger mistake to bail out Fannie Mae and Freddie Mac, and while Wall Street may breathe a collective sigh of relief it will prove a particularly fatal mistake to have bailed out AIG.
With this transaction the government has crossed the tipping point. It has abandoned a key underpinning of capitalism