Obama Makes Bad Policy Decisions Over And Over Again
In NORMAL economics companies that cannot stay afloat go bankrupt but are still allowed to continue doing business. They reorganize, restructure, etc. So WHY is the Obama administration working so hard to bail out just this one insurance company? According to the AIG website:
Last revised: January 18, 2008
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
As you can see this is a global company. So if the united States is giving them billions of dollars over and over, who else is doing the same thing? Surely their are more countries than just us bailing them out. And WHY is it so important that we do so? It seems to me that these giants are exactly the reason our economy is so bad. Considering the reaction of Wall Street, bailing them out yet again is a very BAD idea.
Looking at the Reuters report on their financial status it is clear that this is a failed company and should be allowed to die.
Stocks have crashed to rock bottom and it is a wonder that normal business hasn’t come up with the conclusion that the company should be broken up and sold off. It is worthless right now and bailing them out makes no sense. Talk about throwing good money after bad!!!
Don’t they teach economics in school anymore? Does the Obama administration understand even the basics of this concept or are they depending on lobbyists for all their policy decisions? All I can say is these are bad and unsound decisions on the part of the Obama administration. Gee, what a surprise! NOT!
Big isn’t necessarily better from what we can see. And while I may not be an investment giant myself, even a little common sense would tell you to let this company go into failure and let something that WORKS take its place.
CNN’s Lou Dobbs show ran an article on this last night which only serves to show just how retarded the White House and the Obama administration is:
The Dow Jones Industrial average today plunged to the lowest level in almost 12 years. The Dow plummeting 300 points closing just above 6700, investors reeling from the impact of recession, its affect on the financial sector and the government’s responses. The government’s latest effort to prop up the insurance giant AIG utterly failed to improve the mood of investors.
The federal government promising AIG another $30 billion of bailout money, AIG has already received $150 billion and this is their third time to the public drop (ph). Meanwhile, President Obama today took another step toward what many call socialized medicine. The president nominating Kansas Governor Kathleen Sebelius to be the Health and Human Services secretary and to lead his plans for a massive overhaul of our healthcare system. Ed Henry reports now from the White House. Ed?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, Lou, today the White House spokesman Robert Gibbs said the economy is in very bad shape and the president right now is searching for answers, solutions to try to fix it but part of the problem is the White House doesn’t quite know where the bottom to all of this is. For example, Gibbs saying that the White House hopes that this is the end of the bailout money for AIG, but he said he’s just not quite sure. The Treasury Department, of course, is about to launch the so- called stress test on major financial institutions in the United States. It could mean down the road AIG needs even more bailout money. It could mean that other banks need bailout money. Another big issue, of course, for the president is to tackle his health care reform. The spiraling cost there so he decided to roll out his new Health and Human Services secretary today, Kansas Governor Kathleen Sebelius.
BARACK OBAMA: If we’re going to help families, save businesses and improve the long-term economic health of our nation we must realize that fixing what is wrong with our health care system is no longer just a moral imperative but a fiscal imperative. Health care reform that reduces costs while expanding coverage is no longer just a dream we hope to achieve, it’s a necessity we have to achieve.
HENRY: Now, the health secretary post of course came open because of the fact that Tom Daschle had to step aside several weeks ago because of a tax issue. We’ve learned today there’s yet another tax issue for a top Obama appointee Ron Kirk (ph) to be the U.S. trade representative. It turns out that in recent years he had been giving some speeches and basically taking some honoraria and was telling these groups to give the money directly to his alma mater, Austin College (ph).
The Senate Finance Committee however has determined that he should have taken this money from the group himself and then paid federal taxes on it and then passed it onto Austin College (ph). White House aides said that Ron Kirk (ph) has agreed to pay about $10,000 in back taxes and they believe this will not derail his nomination. They have gotten decent signals from Capitol Hill that this is not seen with as much criticism as the Tom Daschle situation, let’s put it that way, and a hearing has been scheduled for Ron Kirk (ph) next week, Lou.
DOBBS: Yes, that almost rises to the level of silly but certainly trivial as a matter of bookkeeping entries when it comes to Ron Kirk’s (ph) taxes, does it not?
HENRY: It certainly seems minor compared to some of the other ones we’ve seen from Tom Daschle to Timothy Geithner, who did get through as Treasury secretary, but about $10,000 is a far cry from some of the other issues and since his own tax preparer thought that he was on the right side of things, I think it appears and I express it appears at this moment from what we’re hearing from Democrats and Republicans on the Hill that this should not stop his nomination, Lou.
DOBBS: Any reaction there in the White House? Any suggestion, any concern that President Obama’s reach is exceeding his grasp in the midst of what is an absolute pre-fall in the stock markets and more bad news and the contraction of the economy that putting forward a three quarter of a trillion dollar initiative on health care is simply too much at this time?
HENRY: Well Robert Gibbs has consistently said that they’re not going to let the daily fluctuations in the stock market determine how their economic plan…
DOBBS: Wait, wait, wait, wait, wait — excuse me. With all apologies to Mr. Gibbs, there’s no fluctuation here. This market has dropped 2,000 points in short order.
HENRY: Of course, but they’re not going to let that be the only barometer, Lou. They’re saying…
DOBBS: All right, then how about this as well. How about a better than six percent contraction in the economy? How about a $9- trillion expenditure by the federal government, the Treasury and the Federal Reserve?
HENRY: Certainly bad news all around. As where I started with Robert Gibbs saying the economy is in very bad shape. I mean how many times have we heard the president himself say that a crisis could become a catastrophe. He’s used that kind of rhetoric to try and push his economic plans. He got a stimulus plan through already at $787 billion.
I think their response would be that they are hoping that once that money starts kicking in it will start turning around some of those — some of that bad economic data. But obviously that’s only a hope at this point because they don’t know how quickly this is going to work and how well it’s going to work. And that’s why when you see AIG needing another $30 billion…
HENRY: … you’re still waiting to see where the bottom here is, Lou.
DOBBS: Yes, yes, I think that it would be one way to express it waiting for a bottom. But at the same time, having really no clue whatsoever about the consequences of the public policy choices that are being made. Thank you very much — Ed Henry from the White House.
Since when did economics work on hope? It takes sound business practices. Once again we have another failed administration to deal with for ANOTHER four years. When is there going to be a president in this country who actually works towards sound principles and the betterment of the united States Citizens? Will any president ever have the guts and fortitude to stand up to the money men and say, “Now just a darned minute! I work for the citizens of this country, NOT you!” I begin to doubt that there is any man alive today or in the near future who has balls and will actually work for AMERICANS!
Now, remember that AIG has already recieved over $150 BILLION dollars in bailout money. Now they are proposing to give the company another $30 BILLION. That’s a whopping $180 BILLION dollars of YOUR tax money that the Obama administration has commandeered in order to prop up this failed company! < Smacks forehead > Gosh, why didn’t I think of grabbing money I have no right to and giving it to a company that has no business being IN BUSINESS!
When will those morons in the White House learn economics 101? Just how far down does the taxpayer have to be on the list before someone in office takes notice? Oh, that’s right, if you are a TAX-DODGER then you are all right!
This story made me smile broadly as I read it:
A questioner identifying herself as Tyra (sp?) said, “You have come to our county and asked us to trust you, but those that you have appointed to your cabinet are not trustworthy and cannot handle their own budget and taxes.”She also added, “I’m one of those people who think you need to have a beer with Sean Hannity.”
Now, the article doesn’t mention which country they are speaking about, but it seems to be a united States paper. However, it seems to me that along with bailing out failing companies, if you are a tax-dodger then you are guaranteed a position in the Obama Administration! Read Here:
* Republican Senator Judd Gregg withdrew from consideration on February 12 citing political differences with the Democratic president. Gregg was Obama’s second pick for commerce secretary after New Mexico Governor Bill Richardson withdrew in the face of a legal inquiry.
* Former Senate Democratic leader Tom Daschle withdrew his name from consideration as Health and Human Services secretary on February 3 amid questions over tax errors that prompted him to pay $140,000 in back taxes. Obama then nominated Kansas Governor Kathleen Sebelius to oversee the healthcare system.
* Obama chose Democratic Representative Hilda Solis of California for Labor Secretary. She was confirmed by the full Senate, but only after questions about her husband’s unpaid business taxes had put her confirmation hearing on hold.
* Nancy Killefer, Obama’s choice to oversee budget and spending reform, withdrew on February 3 because of tax problems. She stepped aside the same day Daschle’s withdrew.
* Timothy Geithner was confirmed as treasury secretary by a vote of 60-34 on January 26 despite questions about late payment of some taxes. He previously served as head of the New York Federal Reserve Bank.
Please don’t tell me this is change we can believe in. It seems like business as usual in Washington D.C. To top all this off we have the Prime Minister of England telling us that he thinks it is a good idea for Americans to foot the bill for the EU’s recovery! What the hell? Is this the Twilight Zone? Just what gave the Prime Minister the idea we would go for such an outrageous plan?
DOBBS: President Obama tomorrow meets with British Prime Minister Gordon Brown at the White House. Brown, leader of Britain’s Socialist Labour Party (ph), is pushing now for what he calls a global new deal. The so-called new deal would be funded by who else, the United States of America. Kitty Pilgrim has our report.
KITTY PILGRIM, CNN CORRESPONDENT: British Prime Minister Gordon Brown wants the U.S. to spearhead a new deal style rescue package for the global economy. In his recent op-ed he recalls U.S./British ties and the era of Winston Churchill using all the Obama buzz words calling for high growth, low carbon recovery and applauding the American spirit of enterprise.
GORDON BROWN, BRITISH PRIME MINISTER: A global grand bargain is not now just necessary but it is vitally urgent.
PILGRIM: The irony is not lost on many who study U.S./European relations. With a couple of trillion dollars of world market losses the U.S. has gone from international pariah to potential savior. Nile Gardiner has studied European/U.S. relations for the conservative Heritage Foundation.
NILE GARDINER, HERITAGE FOUNDATION: In this case this is not going to benefit the United States at all. This is the European Union trying to dictate to America and the rest of the world how to solve the financial crisis.
PILGRIM: Financially Europe is in very tough shape. It’s deeply divided with charges of protectionism among member states. With an unemployment rate in double digits in some countries, several banks across Europe have had to be nationalized. This weekend the EU rejected a bailout for Eastern Europe. This global financial consultant says there’s no question.
NARIMAN BEHRAVESH, IHS GLOBAL INSIGHT: Europe could do a lot more. Europe could cut interest rates more. The European Central Bank could cut interest rates all the way down to zero like what the Fed has done. They could provide a lot more fiscal stimulus. They’ve only done it in a very, very small kind of timid way.
PILGRIM: In the U.S. the financial stimulus plan over the next two years is 5.5 percent of GDP, but it’s only 1.5 percent in the U.K. and the euro zone (ph).
PILGRIM: Now the White House today seemed to relish the prospect of being back in European good graces saying they will see Prime Minister Brown tomorrow and will continue the conversation to have everybody in the world on the world stage acting together to improve our economy — Lou.
DOBBS: Well that sounds very — I don’t know, sort of warm and fuzzy. But as Ed Henry just reported and as is becoming increasingly obvious, there’s no one in this administration or the previous that has a clue as to what is going to work in regenerating some energy in this economy.
PILGRIM: Well neither do the Europeans. I mean they haven’t been able to cooperate or coordinate at all during this crisis and they have not done a very good job figuring out their own mess.
DOBBS: It could be an interesting march with the prime minister and the president shoulder to shoulder marching into the unknown. Thank you very much — Kitty Pilgrim.
Well much more on the prime minister’s push for a global new deal and whether it makes any sense at all later in the broadcast. We’ll be joined by the two of country’s leading economic thinkers.
If Obama goes for this plan we are so screwed as Americans. Can you imagine being on the hook for the entire E.U.? With all their member nations not one can come up with a plan and so their BEST solution is to come to the AMERICAN tax-payer and say, “Bail us out! You are bailing out everyone else!” Ya, and what planet do they live on? This is becoming insanity!