Tuesday, December 16, 2008

Need another reason to not bail out states?

Gov. Steve Beshear will be jetting to Washington D.C. in January and is certain to celebrate the coming trillion dollar bailout Pres.-elect Barack Obama has promised the states.

And so, states like Kentucky will see little sense in mending their spending practices. In fact, what we are discouraging with all these bailouts is efficiency and responsibility.

Wonder how long we can keep that up?

The latest from the front lines of the financial bailout might help fill in the picture:

"Reports are surfacing that AIG, the recipient of a $150 billion taxpayer-funded bailout, is aggressively cutting its insurance rates in an attempt to win new business and boost market share. If underwriting losses become a problem, the U.S. government may have to provide more financial support. According to Liberty Mutual chief executive Edmund Kelly, "I think it's fair to say they're doing some very stupid things in the market. If (AIG units) are not reined in, it could be very destabilizing for the market.""

Our federal government now appears determined to borrow more money in order to allow our state politicians to campaign for re-election on how great they are at bringing home the bacon.

Hmm. Interesting strategy.

1 comment:

Anonymous said...

I'm not from Kentucky but I admire Senator McConnell in his stance against bailouts. What 2 states did he make reference to in that these two states don't need or want a bailout? I want to move there, Iowa is too liberal for me. Thank you.