One of the tactics AIG used to get itself into such a mess was to loan money to itself. It works like this, you have a hundred bucks in your checking account, and the electric bill is $200. You write a check to yourself for a hundred dollars and deposit it in your account, then you write a check to Consolidated Edison for $200. Should be fine, right?
Well . . . no . . . because you really only have a hundred dollars, so the check bounces, so you now have $65.00 after the fees charged by your back, and you still owe $200 to the electric company.
No problem, because the federal government will send you as much money as you need to pay your bills.
Except, the government doesn't (nor should it) bailout those who cannot manage their money properly.
If you're AIG, however, the feds have billions for you!
Not only shouldn't the feds have bailed-out AIG, the directors and officers of AIG should be under arrest for fraud!
If you bounce a check it's actually a felony! The AIG guys are rewarded!
It's important to note that John McCain was dead-against the AIG bailout, and then less than 24-hours later he was all for it. McCain is the king of flip-flop and never has there been a Democrat who has switched positions so often and so rapidly as this knucklehead.
If you think these problems are the fault of the Democrats, you are mistaken. This is Reaganomics at its finest, and this is what happens to every industry that is deregulated. Economic policies of the last generations have destroyed our nation.
If you vote Republican, I have only one question: Why do you hate America?