How, exactly, does this work? The Federal Reserve is close to a deal where it will essentially acquire 85% of AIG in exchange for an $85 billion loan. Where does the money come from? Where does the authority come from? We’re essentially nationalizing one of the world’s largest companies here, right?
Until this week, it would have been unthinkable for the Federal Reserve to bail out an insurance company, and A.I.G.’s request for help from the Fed of just a few days ago was rebuffed.
But with the prospect of a giant bankruptcy looming — one with unpredictable consequences for the world financial system — the Fed abandoned precedent and agreed to let the money flow.
The fundamentals of our economy being as strong as they are, according to Mr. McCain, I guess now we’re just strengthening the hell out of them. If we’re not careful, we might pull something.
*S*O*C*I*A*L*I*S*M* courtesy of George W. Bush ?
Socialize the liabilities; privatize the profit. That’s how Bushian socialism works.
Next time I hear about welfare from a conservative, I’m gonna cram this one down their throats.
Where does the authority come from?
http://www.federalreserve.gov/aboutthefed/section13.htm
If we’re going to socialize things, start with the oil companies