Tuesday, September 16, 2008
King Henry (Paulson) To The Rescue With "Other People's Money"
Just being announced (unofficially)is another taxpayer bailout: This time giant insurance company AIG.
The report in the NYTimes says the Treasury Department is going to lend AIG--a private company with private investor ownership--$85 billion of taxpayer funds. AIG, in turn, will pledge all of its assets as collateral for this loan. Shareholders will see some dilution, but will not be wiped out.
Once again, this is Government-by-Fiat. All done behind closed doors by men "obligato" to the very industries that created this fiasco. Apparently, Henry Paulson, current SecTreasury and ex-CEO Goldman Sachs, is endowed with powers that allow him to supersede Congress when it comes to allocating taxpayer money.
Yes, it's an emergency; yes, it's a crisis. But do we want to abdicate any semblance of democracy and permit one or two men to distribute public funds as they--and only they!--see fit?
How much money is being made by hedge funds that bought AIG securities betting that Goldman Sachs' King Henry would, once again, come to the rescue with boat-loads of "other people's money?"
And who are the "other people?" They are us!