Whats the saying? Power corrupts and absolute power corrupts absolutely. And you can see the end result on the front pages everyday. They have, literally, let Wall Street run itself. The "laissez-faire" philosophy of the republicans sounds and looks a lot like Hoover right now. That, most definitely, happened on Bush's watch. Say what you want about the origins of the problem but there is no doubt whatsoever that regulation of securities (via the SEC) has been totally and 100% completely absent during all of this. I'm not a proponent of either party - and so I think it makes it easier to see that they are both grossly incompetent for the most part. ''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt, Democrat of North Carolina, agreed. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
#Mweather hornell mac#
''These two entities - Fannie Mae and Freddie Mac - are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. Here's a little snippet from the article:Īmong the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing. Read this 2003 NY Times article about Republican efforts to increase regulation of Fannie Mae and Freddie Mac. But, if interference is needed for the greater good than this is how it should be done. If this were how bailouts worked you wouldn't see too many executives asking for them.ĭon't get me wrong - the preference is in general to let companies just go bankrupt and not interfere. Eventually company is either dissolved or IPO'ed - with all proceeds going to taxpayers. Government runs company in such a way to preserve the general economy.ĥ. It is certainly worse than robbing the corner store.Ĥ. Costing the taxpayers billions of dollars needs to be made a serious crime. Corporate officers arrested and face heavy criminal penalties. Frankly the stockholders should be happy they don't end up owing money which is what the math certainly will work out to.ģ. Stockholders get a 1-time eminent domain payment of (value of company assets)-(cost to taxpayers for bailout)/(# shares outstanding).
If I were in charge the only thing I'd do differently when doing bailouts like these would be:Ģ. Sure, they shouldn't be necessary, but regulators messed up and now for the sake of not collapsing into a depression we need to clean up. I think that some of these resuces were necessary for the good of the greater economy. Otherwise it becomes profitable to mismanage your company and let Uncle Sam buy you out.
It was essential that every stockholder in AIG lose virtually everything they invested.
Uh, I think that was a foregone conclusion when they hired inept management. Why should the public be forced to take on the risk these same asshats assumed solely because the asshats screamed "free markets" to get the regulations that would have protected the public voided and the agencies charged with oversight gutted? You didn't see AIG investors protesting the profits they were getting when times where better so why protest when they go belly up? It is corporate welfare pure and simple.Īll the little stockholders at AIG are getting the shaft. The company certainly knew the risks when it lobbied Congress to change the laws and lastly the Congress knew the risks when it deregulated everything at the behest of the company. Investors knew the risks when they purchased the stock. AIG knew the market risks when they offered their IPO.
It is the same asshats that scream "Free Market" when they perceive a wrong against the corporation that are now screaming to not allow the market to work as it should. Many businesses go out of business, some of them more spectacularly than others, and there was no mention of a government bailout of them now was there.
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