AIG, by losing money and maneuvering their operations to the brink of bankruptcy, was telling us that they were inefficient. So what did we do? We forced the taxpayer to assume the losses, and now we are supposed to be shocked that it is not working out. Had AIG gone bankrupt, it would have been impossible to hand out these bonuses. The taxpayer would have been fleeced for $170 billion less last year. Had they gone bankrupt, the world would not have come to an end, it would just continue on with one less engine of wealth destruction.
The hoopla over the AIG bonuses and bailouts continues. The media continues to be focused on AIG instead of Congress and the Fed. But, AIG is a perfect example of why bailouts are not the solution. Ron Paul explains.
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