Still Beats Sinking... Probably

[l33tminion]

During yesterday's stock-market stagger, investors noticed that major insurer AIG was about to go bankrupt, quite possibly bringing the whole market down with it. Now the Federal Reserve has responded by offering an $85 billion loan to AIG. Well, what if they're not good for it? There's a reason their credit rating was dropped.

I'd put this into perspective, but this post does such an excellent job that I'll just quote part:

"... A person briefed on the matter said the agreement does not require shareholder approval."

Shareholder approval? Shareholder approval‽ How about Congressional approval? Taxpayer approval?

Let’s put this in perspective. $85 billion is more than the entire annual discretionary budget for the Department of Health and Human Services... It's half again as large as the entire annual discretionary budget for the Department of Education. It's more than twice the annual budget for the Department of Veterans Affairs, more than twice that of the Department of Homeland Security. It's more than the combined annual discretionary budget of the Departments of Labor, Interior, Treasury, Transportation, Agriculture, and NASA combined.

Comments

The Federal Reserve

[grant@nertzy.com (from livejournal.com)]

Don't be confused into thinking the Federal Reserve answers to the government. It can do whatever it wants. All the government can do is beg it for more loaned money to put us further into debt.

Re: The Federal Reserve

[chiaki777.livejournal.com]

grant has a point. The Fed can make all the money we want, it's just going to be devalued as it creates more money.