2008 Libertarian Party Presidential candidate Bob Barr penned another editorial for the Atlanta Journal-Constitution in which he questions the methodology and logic behind the recent bailouts.
American International Group has just received its fourth helping of dessert —- another $30 billion of taxpayer money —- in its lengthy visit to the federal bailout trough. AIG’s sister-in-debt, Citigroup, is close behind, enjoying another $25 billion equity purchase by the feds. Our national debt and current-year deficit are both hovering in territory not seen since World War II. And the end is nowhere in sight.
Is all this happening by trial-and-error, as seems often to be the case; or is there really a “plan” according to which administration officials, including Treasury Secretary Timothy Geithner, are orchestrating the most massive economic bailout in eight decades? Two bailout models seem to be floating around the meeting rooms and briefing papers in our nation’s capital nowadays. Unfortunately, both are deeply flawed.
Read the rest.