Government Takeover of Banks: Is This Socialism?
The US government just recently took over another financial institution, AIG. The media keeps calling it a bailout, but what is really going on?
I completely agree with everyone that something had to be done with IndyMac, Fannie and Freddie, and now AIG, but should the government have taken them over and acquired 79.9% of stock from each?
This is the situation: the government has used our money, taxpayer dollars, to “put” money into these companies. In exchange they get 79.9% of the stock. Doesn’t this mean that we paid for the government to take over the ownership of our mortgages, insurance policies, and other financial wealth? To me, this seems like a step towards socialism.
There is something about all of this that we should look into: the Federal Reserve was involved in the loan and takeover process. Now why are these private companies being taken over by another private company? The Federal Reserve is not a government agency. They are private just like Citibank. This worries me.
I am rambling in a lot of directions because this situation is going in a lot of directions. I am scared for the future of the world, not just the US. Something is not right about our government owning such a huge stock in our country’s financial lifeline. They can’t manage the money they already have, what makes anyone think they can manage our mortgages and insurances too? Until the government stops wasting money, they need to step aside and let a successful company handle these types of things. But I guess the government is the only organization that has the power to just walk in and said, “I’ll take that!” Kind of like imminent domain…
If anyone is a real estate investor, you probably have come across or at least know about the ability of mortgage companies to call a mortgage due. This gives the government a lot of power and money. Please, someone tell me this situation is not as bad as it sounds!!!