k9s-4-k8

White-Hot Mad over AIG

On the one hand, I can understand the anger, but then people explain their anger that only exposes their inability to grasp the alternative inaction. Should we throw caution to the wind and assume that any claim of a resultant worldwide domino effect is nonexistent? Is counterparty risk a ruse to suck in taxpayer money for the bailiout? Isn't Paulsen experienced enough to understand the risk, or is he in on this ruse?
We can already see some of the depth of this crisis. Are we anyway close to the end? Would it be better and/or cheaper if we just let them all fail? Did anyone note how the world credit market froze up AFTER Lehman brothers went belly up? Do you really think Lehman was THE big player? How much cheaper would it be if we let AIG fail? Surely less than $150 billion, eh? And if it turned out to be much, much, much worse...surely we wouldn't blame the government for having allowed them to fail. That's just the capitalist way.
These firms won't get off scot free. They blew up their companies, and will have to deal with the ensuing mega-regulation, litigation and resultant slow, slow growth for decades to come. These firms will never employ as many people as they have the last few years. They won't make money like they had earlier this decade, for years and years to come. They will never attract investor money as they once had. They will pay, but unfortunately, we have to pay first if we want to have any chance of avoiding the kind of unemployment, bankrupt businesses and overall economic turmoil that our initial and likely, additional capital infusions, may possibly ward off.