Posts Tagged ‘bailouts’

I had to take a break from my series’s that I am working on for a short comment on why I think the current government actions to boost the economy are so dangerous. It is not just that they bailouts are expensive and printing moeny will devalue the currency. Its not just the taxation and the long-term effects that bother me. It is also a short-term effect that will most definately hit us, and it will likely hit us within 5 years, unless other economy retarding policies are put in place that accellerate the problem.

I know this mistake is devastating because I have made the same mistake myself, sort of the same anyway. I have a history of entrepreneural activity. I have been trying to start businesses for most of my adult life. The biggest issue I have had is hanging on to an idea or a business after it has shown that it is not going to work. Dumping money and resources into a failed project only drains you, and it still doesn’t make the project work. In the end, you still have to take your failure lumps, only you have much fewer resources to start over with. Read the rest of this entry »

A lot of people are upset about this AIG stuff. I wanted to throw in my two cents and perspective, since it is turning into a real circus. Then, Mr. Frank, a man whose qualifications do not lend themselves to business, but is in charge of it anyway, made some statements that I find both disturbing and highly revealing of our current government’s attitude.

For starters, AIG should never have been bailed out. Let it fail. I don’t care how big they are or what they are in charge of, if they are losing money, they should fail. Yes, it will affect a lot of people. Guess what, so will using taxpayer dollars to bail them out. We are already in hock for $40k per citizen just to cover the current national debt. I don’t know about you, but that’s more than I make a year right now. If AIG had been allowed to fail, then some of these contractual obligations, which include these bonuses, would have been annulled in a chapter 11 case, the company would have restructured and continued, and not that many people would have been harmed. Read the rest of this entry »