Some of us are still getting over the $85 billion bailout insurance conglomerate AIG got from the federal government a few weeks ago. Now comes word AIG is getting billions more in federal money. You’d think the company would have sold off some of its vast assets before coming back to the bailout well again, but no.
Yesterday it was announced, the New York Federal Reserve is lending American International Group $37.8 billion. As the economy struggles and the financial markets stumble, one has to wonder if the billions being handed over to AIG are a wise investment. Let’s hope there’s some small print that penalizes AIG severely if it uses any of this bailout money to send its executives on anymore of those expensive retreats at luxury resorts.
On Tuesday, the Dow went into a nose dive and closed down 500 points. Yesterday in an emergency move, the Federal Reserve slashed interest rates by a half a percent point to 1.5 percent. Five world banks followed the Feds action. A huge effort. Still, the investors on Wall Street were apparently not impressed and after erratic trading the Dow closed down 189 points.
It’s no wonder the average American gets worried and even depressed watching this confusion in the financial markets and in Washington. At difficult times like this we need a president who has the confidence of the American people and the respect of the rest of the world. That kind of president could calm fears and inspire hope. Something to keep in mind when you cast that ballot in the November 4 presidential election.