Gov. Bailouts

In 1979 Lee Iacocca asked the government for money to save Chrysler. He claimed the loss of jobs would impact the country and he needed help. Once he got the loan he turned the company around and paid the money back early. That should have been the blueprint for how the government interacts with the economy. The bailout of Fannie May and Freddie Mac as well as AIG and countless banks was a mistake. This was a tremor warning us of an earthquake. All we did was quickly rebuild the damaged building sitting on the fault line.  Those businesses failed for a reason. Wall street and lending institutions have grown and expanded in an effort to keep investors happy and CEOs wealthy. What does Wall Street really sell?  Why are stocks so valuable?  Our entire financial system is built on sand and it will fall. Analysts call those corrections. We ignored the first “correction”, but it will be back. Businesses must make smart decisions and stand on their own merit or be allowed to fail.