As the deepening financial crisis worsened yesterday, the Federal Reserve sought socialism as a cure and gobbled up another formerly private entity, the huge American International Group (AIG) insurance company, in an $85 billion bailout. The move was undertaken to prevent the bankruptcy of the nation's largest insurance company in what would have been, according to Bloomberg.com, "the worst financial collapse in history."
On Monday, September 15, Lehman Brothers Holdings, Inc., long a cornerstone of the Wall Street banking establishment, filed for Chapter 11 protection with the United States Bankruptcy Court for the Southern District of New York.
For decades, the health of General Motors has been equated, rhetorically at least, with the health of the U.S. economy. In the early 1950's when the company had more employees than the combined populations of Delaware and Nevada, GM President Charlie Wilson remarked, in a closed congressional hearing: "For years I thought what was good for our country was good for General Motors and vice versa. The difference did not exist. Our company is too big. It goes with the welfare of the country."