This weekend’s revelation of AIG’s European counterparties, and the flap over the “retention bonuses” they paid employees, are both signs of a creeping and worrying government influence in business. Politicians now feel emboldened to issue ultimata regarding American businesses and with whom they may do business, as well as how they may compensate their employees.
Yet how can believers in the free-market defend the economic freedom of those who take multi-billion dollar bailouts from the government? Haven’t they already surrendered their freedom?
Update: A community banker writes in:
It’s quite apparent that AIG has become the sink hole–the toxic waste disposal site–the Yucca mountain of the banking industry. The taxpayer will never see a red cent from that investment. I guarantee it.