Bailout only benefitted government
The Way I See It
by DON WEST
The word is out that the government (taxpayers) will make approximately $22 billion profit from the sale of stock from AIG, the huge insurance company that was part of the TARP bailout. Beware of the creative accounting, as nearly of one-third of that stock comes from the Federal Reserve, not the treasury’s bailout program. There is nothing “federal” about the Federal Reserve. In addition, part of the bailout was a concession granted by the government (taxpayers) to AIG that possibly billions in future taxes have been waived. Maybe the rest of us taxpayers can apply for future income tax waivers. We deserve something for cordially agreeing to the massive bailouts, which by the way, we are still in the hole over $24 billion from the auto bailouts and that figure doesn’t even include the worthless stock the taxpayers are still holding from GM.
Before we rescind our ownership in AIG, I suggest that we rescind the billions in bonuses and stock options that were given to prized employees throughout AIG during the time they were heading for bankruptcy – we could raise that “profit” to $25-$30 billion. I searched for it, but found no information about what the cost is now and will be for generations to come, for the funds that we must have borrowed from China, to loan through TARP to all these companies who were “too big to fail”. I’ll bet those interest payments will reduce that profit picture considerably.
One more thing before we release AIG from government (taxpayer) control – have we set a precedent here for large companies to be even more reckless because they now know that the government (taxpayers) will not let them fail? Ethics and morality have no place in huge corporations if good behavior interferes with profit.
However, there must be a bright spot in all of this encouraging news. Maybe this $22 billion can be used to fill in the gap between how much the government wants to spend and how much they plan to soak the taxpayers with planned higher taxes. Don’t think for one minute that the increase they want to lay onto the wealthiest one percent of the population will be born solely by them. The Walton family is included in that one percent and the “always lower prices” won’t be quite as low as we thought. Oh, they’ll blame it on fuel prices, and fire prevention in Bangladesh, but chances are it will be going to the IRS.
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