Bailing out AIG — good idea or no?
Another assessment from economist Nouriel Roubini in a CNBC interview yesterday about the ongoing Wall Street meltdown (“‘Socialism’ on Wall Street” Sept 17, 2008). Asked about the advisability of Uncle Sam rescuing the sinking insurance giant, AIG, Roubini says it’s a very bad idea.
So where was the regulation and supervision? They screwed up big time over and over again. Now we’re in a situation in which the profits have been privatized, and now the losses have been socialized…
“This is not a market economy. This is socialism for the rich, for the well-connected on Wall Street…”
Roubini rounds out his analysis by explaining his idea of what constitutes a practical and important use of public money, what should be done about the distressed U.S. housing sector, and the way to avoid massive home foreclosures.
Watch:
See previous post on Roubini here.
UPDATE: Today’s New York Times gathers some opinion from around the world on the AIG bailout (“Abroad, Bailout Is Seen as a Free Market Detour” by Nelson D. Schwartz, Sept 17, 2008)
