Economics of the Day

The bailout of AIG by the Fed is an affront to free market economics. Small consolation that it was done by a "loan" rather than an out and out giveaway - but how exactly is a company going under going to turn around fast enough to repay $85 billion in two years?

Even if AIG sold what is by all accounts its most profitable division, ILFC, for what is usually a reasonable amount of ten times earnings, that gets them $6 billion. Where will the other $79 billion come from folks? This of course, doesn't take interest into account...

Now we have the Democratic-controlled House passing a supposed drilling act that accomplishes nothing, except putting new taxes on the energy industry and refusing to open up the most bountiful portions of our available resources to exploration and development. Yet more symbolism over substance.

Here's to hoping that the Democrats' "drilling" legislation is never signed into law. With no action, most if not all off-shore drilling restrictions will expire at the end of the month - which is what this Nation needs.