Bailout Number Two

All precedent and law was thrown out the window yesterday as the Federal Reserve stepped in with $80 to bail out insurance giant AIG. Actually, it's worse than a bailout...it's the government sweeping in and buying AIG.

Hundreds of hears of bankruptcy law means nothing when the unelected, private, unconstitutional Federal Reserve steps in and places taxpayers on the hook for billions of dollars.
The morons like Sen. Charles Schumer, D-N.Y, continue to state things like, "The administration is approaching an unprecedented step, but unfortunately we are living in unprecedented times. Hearing of these plans, you have to stop to catch your breath. But upon reflection, the alternatives are much worse."

Really you freak? The liquidation of AIG would no doubt be painful, but it would also be swift ,quite orderly, and private--not to mention constitutional. Who is next? Washington Mutual? (Yes, and watch the FDIC 'fund' be liquidated by WaMu's coming demise.)

I'd love to hear Schumer's explanation of AIG's failure. No doubt words like "greed, corruption, and "malfeasance" would be thrown around. But these morons have no clue what they are talking about. Schumer could even tell you what the alternatives are to an AIG bailout, let alone weigh the options.

UPDATE: According to the Washington Post, 'The Fed is using the emergency authority it was granted during the Great Depression. By law, the Fed can lend money to any individual, partnership or corporation in unusual and exigent circumstances, when the borrower cannot access funds in other ways. The power had not been exercised until March, when the Fed used it to rescue Bear Stearns.'

So, the Fed is basically doing something it has the legal authority to do according to old legislation. However, the Fed itself is unconstitutional, so the issue is moot.