How Many Shares Did You Get?

According to a statement by AIG Tuesday concerning Fed's "$85 billion secured revolving credit facility," we are all stockholders in the company.

"The AIG Board has approved this transaction based on its determination that this is the best alternative for all of AIG's constituencies, including policyholders, customers, creditors, counterparties, employees and shareholders. AIG is a solid company with over $1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues. We believe the loan, which is backed by profitable, well-capitalized operating subsidiaries with substantial value, will protect all AIG policyholders, address rating agency concerns and give AIG the time necessary to conduct asset sales on an orderly basis. We expect that the proceeds of these sales will be sufficient to repay the loan in full and enable AIG's businesses to continue as substantial participants in their respective markets. In return for providing this essential support, American taxpayers will receive a substantial majority ownership interest in AIG."

Wow, socialism never sounded so good. What has in fact happened over the past couple of weeks is that our government has "acquired" Fannie Mae and Freddie Mac and 80% stake in one of the largest insurance companies in the world.

Of course the Fed is acting as our saviour. If they did not step in, other markets would suffer or perhaps fold and blah, blah, blah. And the American public buys it all and cheers, "long live the fed." What they do not realize is that by artificially propping up these markets, the fed and our messianic government are going to make things much worse.

One particular statement that the Fed made in a press release yesterday really got under my skin.

"The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance."

Wait! Considering the Fed's monetary policy of inflating the money supply which drives up the cost of goods and ruins our savings coupled with a progressive income tax used to make interest payments to the illegal banking cartel, one may ask, "So now who is responsible for reduced household wealth and weak economic performance?"

Answer: The very men that are claiming to save us from such by stealing more of our money then telling us how great they are for making us prosperous. Are we that stupid, really?