Please no more bailouts; It’s setting a bad precedent

Why did the federal government save AIG? I don’t understand why the federal government should bailout a public company. If a company is run into the ground and make mistakes. They deserve to go out of business. The more government intervention with companies and the market the problems of these companies will not be fixed. If a company takes on to much risk and they run into problems. That company should solve their problems. It is not the government’s job of bailout a company. Hopefully AIG learns their lesson, but I highly doubt it. The US automobile companies never learned their lesson in the late 1970′s with Chrysler’s bailout. Look at them now they are asking for federal loan to help with their future business.

I believe that the government should not be involved with business. Competition for a business is good. It requires them to improve and innovate to stay in business, or they will be forced out by the competition. The government should had allow AIG to go into bankruptcy and let the good assets be sold off. It is the only way for this financial crisis to bottom out and for the economy to improve. When there are crisis the strong survive and the weak disappear. It is time like companies like AIG who are weak to be broken up and disappear.

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~ by Neil on September 17, 2008.

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