The whole idea of the insurance industry is that if I buy insurance from you, you pay off the claims. Absent ability to pay claims, there’s no business there at all. It’s just fraud. Whether or not it meets the legal standard for fraud, I couldn’t say. But in ordinary language sense, it’s a fraud—you’re selling a service you have no capacity to deliver.I'm no economic expert - not by a long shot - but it seems to me we're throwing billions of dollars (HUNDREDS of billions!) into a never-ending black hole.
Why do we keep doing it? At what point do we stop? Seeing that it's the government's money, why aren't the failed leaders of AIG (and other bailed out institutions) being fired and held responsible for their absolute and stunning failures.
Sooner or later something is going to have to give. If the government continues to wait too long to dump management while at the same time throwing taxpayer money into these collapsed organizations, those taxpayers may just revolt.
