"I entirely didn't think about bailing out Lehman using taxpayer's money."Treasury Secretary Henry Paulson said.
But the "taxpayer's money" was used for bailing out AIG.
The US government abandoned one company but rescued another company.
The reasons people say are almost the same. But those reasons don't make sense at all. The HUGE taxpayer's money is used for just one company. The solid and convincing reason is necessary.
One business man in Wall Street said, "The government can't (must not?) control the economy, so it shouldn't bail out a company."
Yeah! He is right!
Paulson is ex-CEO of Goldman Sachs. Hmm... I wonder if he didn't like Lehman because something happened while he was the CEO. This is much more convincing reason, isn't it? Haha.
But necessary convincing reason is not why they abandoned Lehman, but why they bailed out AIG.
After the G7 on April, Paulson said he didn't think that bailing out with taxpayer's money or government intervention would be considered. He emphasized that The US wouldn't adopted those things.
In the G7, he explained the US's countermeasures against the subprime loan problem, and he also said that using taxpayer's money and government intervention were not included in the program because the harm would be more than the benefit.
But AIG was bailed out. I'm not convinced at all.
2 comments:
American financial institutes are so corrupt; they have the money to buy people in Washington (D.C.) to pass laws that favor them and become richer. Then they become richer by selling unethical sub-prime mortgages until it backfires, which then the higher-ups leave with their money and let the taxpayers fix the issue.
Some of those higher-ups are in jail now, but there are many more that aren't.
But i agree, its stupid and selfish. Unfortunately, the old adage still holds true, that "power ultimately corrupts", which is why tight regulation needs to exist to limit the amount of power and limit corruption. sigh... 8(
Oh, they can buy people in Washington. I see.
Many people want to have power, but it's very dangerous to have it.
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