CHESSNOID

These bailouts are starting to look like a big government ponzi scheme.  It is only a matter of time till the house of cards fall down.  Foreclosures and unemployment are rising, and bankrupt companies and banks are failing but instead of letting the natural events play out, the government is throwing good money after bad.

NY Times:

The government faced mounting pressure on Monday to put billions more in some of the nation’s biggest banks, two of the biggest automakers and the biggest insurance company, despite the billions it has already committed to rescuing them.

The government’s boldest rescue to date, its $150 billion commitment for the insurance giant American International Group, is foundering. A.I.G. indicated on Monday it was now negotiating for tens of billions of dollars in additional assistance as losses have mounted.

Separately, the Obama administration confirmed it was in discussions to aid Citigroup, the recipient of $45 billion so far, that could raise the government’s stake in the banking company to as much as 40 percent.

The Treasury Department named a special adviser to work with General Motors and Chrysler, two of Detroit’s biggest automakers, which are seeking $22 billion on top of the $17 billion already granted to them.

All these companies’ mushrooming needs reflect just how hard it is to stanch the flow of losses as the economy deteriorates. Even though the government’s finances are being stretched — and still more aid might be needed in the future — it is being forced to fill the growing holes in the finances of these companies out of fear that the demise of an important company could set off a chain reaction.

Instead of trying to stop bankrupt companies from failing, the government could of spent the bailout money on stimulating the economy. If you take all the trillions WASTED in the past 18 months on all the numerous bailouts and divide that number with all the taxpayers who filed returns and made less than $200,000, and gave that sum directly to the  US taxpayer, then the money would have been put back into the economy and definitely created more growth. I am not saying that is the ultimate solution, but at least we would have something to show for the money spent.

All the Bush and Obama administration has accomplished to date is the creation of the biggest government deficit and the worse economy since the Great Depression. With a little more time and a few more wasted trillion dollars, they will make it the worse than that.