AIG continues socialism for rich

Hey Everyone

Yesterday, the federal government had an opportunity to lower rates and help the American worker and consumer. Instead, they chose to protect an insurance company. It is my opinion that the AIG bailout is a development that adds onto the idea that the federal government continues to bail out those on Wall Street while not showing people on main street any true compassion.

The progression of this cycle is frightening. First, we had the lowering of rates while banks kept theirs high. Then we had a flat out grant to the banking industry in the form of overnight liquidity issuance by the Federal Reserve. That was followed by a "stimulus package" to consumers that was primarily used to pay for things like credit card payments, gas, and even groceries. Then a major shoe dropped and Bear Stearns went under and JP Morgan bought it with Fed guarantees. Now, we have an international insurer that has been bailed out by our federal government. My question is where does it stop?

Beware people. Previously, as after 9/11, the federal reserve took rates as low as possible. It has not happened this time which makes me think there is still another level to this crisis. I'm thinking that Washington Mutual and Wachovia are on their last leg. There has also been news about Morgan Stanley not making it through this. It is amazing to me to see Goldman Sachs trading as low as one hundred dollars today.

If you have cash, there might be some buying opportunities out there. But only if you completely understand what you are buying. Otherwise, I would stand pat right now. The dow already has lost close to 800 points this week. Let the dust settle.