by Russ Roberts on March 18, 2009

in Politics

From the New Mexico Independent:

Tom Udall and a group of fellow U.S. senators has sent a letter to embattled AIG CEO Edward Liddy.

Udall, in a statement, said the letter sent a message to Liddy: “Give the bonuses back, or we’ll find a way to take them back.”

That's called a threat. Lovely. But it's obvious that Udall doesn't like to see our money going to a bad cause. Unless it's friends of his. From KFDA in Amarillo:

As part of the $410 billion Omnibus Spending
Bill, US Senator Tom Udall says he included over one million dollars
for Eastern New Mexico industries.

Over $200 thousand is going to a dairy consortium so they can boost research on improved dairy production.

more than $950 thousand is going to the Sapphire Energy Algae so that
company can create and grow technology that turns the algae into fuel.

Udall says the algae company could create 100 jobs.

Love that word, "could." Can't wait to count them.

The Senator does not seem to understand that these two stories conflict with each other. AIG has failed to generate private capital to keep it afloat. It can only stay afloat with my money. AIG can't raise private capital because it has lost the trust of potential investors. They're bankrupt and exist only because of the government's largesse funded by taxpayers. Why would you want to repeat the same mistake with that dairy consortium and Sapphie Energy Algae? If they're good investments, let private investors take the risk and either reap the reward or lost their money. If they're bad investments, why am I being forced to pay for them?


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