Paying for Wall Street's Mistakes
Justin Taylor intervied David Kotter regarding our current banking crisis. With the Fannie/Freddie takeover, the $85 Billion bailout of AIG, and then this [huge bailout being discussed today that could cost up to a TRILLION dollars] (http://www.politico.com/news/stories/0908/13602.html).
Kotter put the taxpayer cost into perspective (pre-Paulson plan):
Last night the federal government committed to lend $85 billion to the insurer American International Group (AIG), on top of the $200 billion of capital promised to keep Fannie Mae and Freddie Mac solvent in July and $30 billion for Bear Stearns in March. In other words, more than $1,000 for every man woman and child in the country has been directed in various ways to resolve the present banking crisis.
I’m concerned by this. Washington failed to provide adequate oversight, and ultimately greed led us to this crisis. Now we as taxpayers have to pay for the bad decisions made on Wall Street.
As Michelle Malkin said today we are seeing the [death of fiscal conservatism] (http://michellemalkin.com/2008/09/19/the-mother-of-all-bailouts-the-death-of-fiscal-conservatism/).
Originally posted at Caffeinated Thoughts.