With the latest insanity that surrounds the AIG bailout, the White House has found itself in total shock that the Executives of AIG have decided to give out big bonuses to themselves for a job well done. The new face of AIG is partly nationalized and partly free, this will cause these weird little squabbles. The tendencies of the AIG executives to believe they still operate in a free market is laughable and naive.

When I first started hearing this mantra about companies being too big to fail, it reminded me of the Domino Theory in the Vietnam days. The Domino Theory said that if communism was to take hold in Asia that there would be a Domino Effect with surrounding countries. No one at the time ever studied this theory or saw if it would hold water at all. They just excepted it as fact and dove into war head first.

What’s going on today is very similar. This theory of “too big to fail” sounds rooted in common sense, but so did the Domino Theory at the time. How do we really know that it is too big too fail? Yes, letting some of these companies fall to the wayside will have a prodigious rippling effect, but how do we know that it wouldn’t be less expensive in the long run? America has crossed over a plateau that is money shot into the stratosphere.

With such big numbers that maybe what we should be asking, is government too big to fail? If the government attaches itself to a company that is too big to fail, doesn’t the government make the entity even bigger? If it was too big to fail and they make it even bigger, doesn’t the government put itself in jeopardy of failing too? Taxpayer money chasing the “too big to fail bonanza” could bankrupt us completely in the future when we are strangled with the utter impossibility of future generations trying to pay this back.

With the boomers retirement community on the rise and the fact that there will be less workers to pay the bills, isn’t our collapse certain? Won’t us giving into this “too big to fail theory” destroy us down the road? All of this is measured in sure numbers and basic laws of mathematics. This latest theory of the baby boomers could be the icing on the cake in their never-ending juggernaut of destruction of all things Holy and functioning.

C. Rich

Popularity: 4%