Questions

If AIG needs to be bailed out because it was over-leveraged on its insurance policies and, with our money, paid on those policies due to losses the financial industries hedged against, why do the financial institutions also require our money? Their losses, on the riskier investments, were covered by the insurance they bought. Their other losses should have been covered by reserve requirements. Why haven't I heard this question asked?

Also, as to the notion of "too big to fail," doesn't that point to a direct failure of the Federal Trade Commission, whose mission, among other things, is to protect consumers against any one firm accumulating too much market power and thus jeopardizing the open market? Prevention of market failure is one of the (few) legitimate roles of the government in the free market.

Here is a good opinion piece from the Wall Street Journal that describes well the role of the Federal Reserve in creating the current mess.

On Scalia

It's a shame I didn't read this until after I watched the interview series with Supreme Court Justice Anotin Scalia that the "legal analyst" for CBS News purports to analyze.

But I'll leave it for you. Here is the interview (Part I, II, III, IV & V).

There is also his interview with Lesley Stahl on 60 Minutes:
Part I & Part II.--Sorry for the links, I'm having a hell of a time embedding video on blogger recently.

There is also his excellent work, A Matter of Interpretation which I've mentioned around here a few times. Look into any of these works, or better yet, read a few of Justice Scalia's opinions. Does any of this material square with the image presented by the "legal analyst" for CBS News? If anyone thinks it does, I'd love to hear how.

UPDATE: Hadn't seen this, apparently Justice Scalia is also now a homophobe.

A Craptacular Idea

Where does Obama get the idea that his central planners will be able to figure out what people in private industry should earn better than the market will?
I've been trying my best to avoid hyperbole and over-reaction to the new administration, but this dud is shaping up to be one horrible president. But only if you're concerned about individual liberty and responsibility.

Stossel on reason.tv

This won't happen often

But I agree entirely with Robert Reich.

Ladies & Gentlemen

The great Milton Friedman