Economic Downfall

For the first time EVER the Fed's are bailing out a major insurance company from going bankrupt. A MAJOR company. When I read the headline I couldn't do anything except stare at the computer screen and blink dumbly. A.I.G is being given an 85 billion dollar loan by the Federal Reserve to keep them from filling for bankruptcy. I knew that the economy was in trouble but when major corporations like A.I.G need the government to fix them...we are worse off then I thought. And as this Times article states:

"...the bailout is likely to prove controversial, because it effectively puts taxpayer money at risk while protecting bad investments made by A.I.G. and other institutions does business with."

Overlooking the typo at the end of the sentence this is a super good point. Why should taxpayers have to put money at risk because A.I.G made bad investments? Unfortunately I do understand the highly negative repercussions a company like A.I.G filling for bankruptcy would cause, I just wish their was a better way for the problem to be resolved. Congress is even considering building a new government agency thats sole purpose would be to buy out failing financial companies (Times article here). It seems like a catch 22 to me, such an agency might allow for corporations to make riskier investments but no one wants to watch the market crumble as those corporations fall.

All in all, no matter who gets the White House this November (please, please let it be Obama) they are inheriting a rats nest of problems.

American Airlins Plans 15$ Bag Fee

This is just plain ridiculous. We already pay too much for airline tickets; they charge for movie viewing and for food. If I buy an airplane ticket it's because I'm traveling somewhere that I need to bring a bag with me, charging for a given part of air travel just seems stupid. Who goes on a trip with out packing a suitcase? Fifteen dollars really isn't that much, but it shouldn't have to be paid in the first place. Bag check has always been included in ticket price and rightly so, up the ticket price if you have to, but this is just insulting. So your company is in trouble, find some other way to bring in revenue like working on customer service. Not charging 15$ to check my luggage and guaranteeing that I will try my best to never fly American Air again.

Link to the New York Times article on the subject.