My criticism of AIG in this week’s blog is far from personal, hardly frequent and certainly not limited to this single carrier or its legion of subsidiaries.
Fed Chairman Bernanke’s on the Hill today for confirmation, and I couldn’t agree more with the Republican Senator from Alabama, Richard Shelby, who flatly said, “The Fed has done a horrible job as a regulator.”
And Sen. Jim Bunning, R-Ky., took it a step further, calling him a “moral hazard” and insisting the embattle Fed chief should return to Princeton.
(And don’t even get me started on Treasury Secretary Geithner.)
My stance – based solely on the facts on hand and my own personal opinion – is quite simply, that in this market, there is no such thing as too big to fail. I have been (and will continue to be) on record as standing firmly against bailouts and/or stimulus in any shape or form.
The core of our free market system hinges on the freedom to fail as well as succeed – and the equality of opportunity is sacrosanct. When we allow – even condone – the federal government’s interference, we instantly undermine the free in the free market. It no longer exists. I know this an age-old argument, but we clearly need a reminder.
We’ve always demanded individuals and companies alike succeed or fail on their own merits. Why should that change now?