Comments on: Dave Gonigam Says AIG Bailout Is ‘Tip of the Iceberg’ http://www.contrarianprofits.com/articles/aig-bailout-could-still-be-tip-of-the-iceberg/5511 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 18 May 2010 05:09:46 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Pat http://www.contrarianprofits.com/articles/aig-bailout-could-still-be-tip-of-the-iceberg/5511/comment-page-1#comment-4546 Pat Sun, 28 Sep 2008 19:58:41 +0000 http://www.contrarianprofits.com/articles/aig-bailout-could-still-be-tip-of-the-iceberg/5511#comment-4546 Maxed out credit freeze on Walls St and Main Street won't be alleviated by transferring inventory to the government because it will just tansfer the freeze along with the subprime loans, and the process will begin again. All it does is set a precedent of government being the back up to an out of conrol Wall Street. In essence, government will guarantee long term for short term actions of Wall Street. But over the long term, government must tax to subsidize those commitments, in effect, doubling the debt the taxpayer already has by now adding Wall Street debt to the government debt to which the government is already committed, leaving Wall St as the only freely liquid party to such a transaction. How is that going to help Americans who have now absorbed the debt twice, once from government to the Fed, and second, from Wall Street to the Fed. Since the government has no money, and all money is taxpayer money, hitting the taxpayer twice doesn't seem to make sense except to relieve Wall St. and the government from liability and shift it to the taxpayer. Maxed out credit freeze on Walls St and Main Street won’t be alleviated by transferring inventory to the government because it will just tansfer the freeze along with the subprime loans, and the process will begin again. All it does is set a precedent of government being the back up to an out of conrol Wall Street.

In essence, government will guarantee long term for short term actions of Wall Street. But over the long term, government must tax to subsidize those commitments, in effect, doubling the debt the taxpayer already has by now adding Wall Street debt to the government debt to which the government is already committed, leaving Wall St as the only freely liquid party to such a transaction.

How is that going to help Americans who have now absorbed the debt twice, once from government to the Fed, and second, from Wall Street to the Fed. Since the government has no money, and all money is taxpayer money, hitting the taxpayer twice doesn’t seem to make sense except to relieve Wall St. and the government from liability and shift it to the taxpayer.

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