AIG Mess Shows Why the Feds Should Quit Banking

By Harry Kimball,  Newser Staff
Posted Mar 18, 2009 1:08 PM CDT
Rep. Barney Frank during the House Capital Markets, Insurance and Government Sponsored Enterprises subcommittee hearing on the AIG bonuses.   (AP Photo)
camera-icon View 3 more images

(Newser) – All the hubbub around AIG and its bonuses is “a complete farce,” Larry Kudlow writes in the National Review. No one should be surprised that those in charge have “completely bungled” the situation. “The government shouldn’t run anything, because it cannot run anything,” Kudlow writes. And the Obama administration was “undoubtedly informed” about the bonuses months ago.

This means Obama is “doing his best play-acting ever,” Kudlow writes, but his numbers will still be damaged by the government’s inept handling of the bailout. The answer? “We don’t need more TARP. We don’t need to take over more big banks.” Some smart decisions are already set to turn the economy around. “And we don’t need to have the government run things it simply isn’t capable of running.”