I was not in favor of the AIG bailout when it was “just” $85 billion, but knowing that AIG has the assets to sell to pay that off, and knowing that the government had taken control of the company, I decided that possibly more brilliant minds than mine really did have a plan.
When, less than 2 weeks later, the bill grew by another $34 billion I was starting to have a little less confidence that things were being handled correctly. Why wasn’t AIG or the government selling off assets and decreasing the price tag? I think it’s important to keep in mind that selling off those assets doesn’t hurt the people that are insured. It simply means the beginning of the end of a company that made some lousy choices. Survival of the fittest?
I woke up yesterday to an additional $40 billion going into the company and to date we have yet to hear of an asset being sold. There are companies lined up ready to buy AIG subsidiaries like American General Life Insurance, so why are we continuing to pour gold in to attempt to fill this money pit.
So, congress approves essentially $1 trillion to get our economic train back on the tracks and to date nearly 1/6th of that has been spent on one company. What’s with that plan of attack? Where’s the explanation for why that was needed? Where is the plan for how and when we will begin to see AIG dismantled and sold off to get taxpayers off the hook? Who the heck is in charge?
Bottom line. The best we can hope for is that this whole bailout thing is handled professionally and meticulously and with oversight and oversight on the oversight. If that happens it has a chance of accomplishing its’ task. So far I’m not convinced that we are seeing the best we can hope for.