Tuesday, November 25, 2008

Bailout: The Question No One Wants to Ask

Too Big to Fail: that's the mantra of our socialist government these days. Of course, Lehman was not too big to fail, but AiG and Citigroup are, and so are GM, Ford and Chrysler, but only if they take the Lee Iacocca salary and fly commercial (requirements not asked of those financial institutions who are partying on our money. But I digress.).

So what is the question no one wants to ask? It's this: what if they fail anyway? What if the government ends up having wasted one to seven trillion dollars of our money, only to see these financial institutions fail anyway?

If we just have to spend the money to save the economy, wouldn't the money be better spent rebuilding the ash heap after it's collapsed, rather than gamble trillions of dollars on the hope that it doesn't turn out to be a black hole?