TOO BIG TO FAIL

Over the last several weeks we have heard repeatedly that certain banks and insurance companies are "Too big to fail." On September 8th, the US government, in an unprecedented socialistic move, took over struggling mortgage giants Fannie Mae and Freddie Mac. AIG, Wachovia, and Washington Mutual were all just recently bailed out by the US government for fear of the alternative. The $700 billion dollar bailout plan, which will likely exceed $1 trillion was the biggest bailout yet; and it is not bailing out you. You are not too big to fail. There is another institution too big to fail, called the United States. Just as the US government pumps money it does not have into the financial system to prevent it from crashing down around us all, the rest of the world will continue to pump money into the US. The United States is "Too big to fail," because if the world allowed free markets to be free, we may just fail. US treasury bonds are already performing as if there is risk the United States may default on its debt. The United States will not fail because it would be far too costly to the world. Sometimes intervention is a necessity, despite the grave costs to everyone.