President Obama is now asking for authority to shutdown businesses using AIG as the "poster child" for such authority. Meanwhile, his Treasury Secretary is asking for authority for government to take over (nationalize) companies such as AIG.
Which is it that the Obama administration wants to do? Shut them down or take them over? In either case, what the President and the Treasury Secretary are requesting is even more arbitrary power to interfere in the market. If Obama really wanted AIG "shutdown" all he had to do was to stop bailing out the company! AIG would have gone bankrupt. Instead, AIG was too value to keep operating as the shell company by which our government has pumped billions of dollars into other companies via the contracts they had with AIG. That has kept those companies from failing or their investors from losing as much on their investments.
As for nationalizing banks and insurance companies, do we really want to allow the same people that gave us Fannie Mae, Freddie Mac, Amtrak and the Postal Service running even more businesses? After all, won't they already be plenty busy running GM and Chrysler? Politicians are not CEOs. They have proven that they cannot establish a proper monetary or fiscal policy. They cannot be trusted to run real businesses either.
We have an established legal process for handling these situations. It is called bankruptcy. Let them fail so the economy can being to recover.
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