Fed to Loan A.I.G. $85 Billion in Rescue
The decision, only two weeks after the Treasury took over the federally chartered mortgage finance companies Fannie Mae and Freddie Mac, is the most radical intervention in private business in the central bank’s history.
This whole meltdown of the companies that exemplified the mantra that government regulation is bad (when they would like to make money by avoiding regulation) that now come begging for government bailouts because of the risk to the economy of failing to provide bailouts sure is disheartening. You might even think real changes will be made. I am sure changes will be made for awhile and then people will forget and special interests will pay politicians to get special favors and we will find ourselves in a different but similar mess a few decades from now.
Related: Fed Continues Wall Street Welfare – 2nd Largest Bank Failure in USA History – Estate Tax Repeal