Team Obama Gearing Up to Bail Out Insurance Companies

An excellent editorial in Investor’s Business Daily:

Americans Fed Up With Bailout Nation

By LAWRENCE KUDLOW | Posted Thursday, April 16, 2009

Is bailout nation about to strike again? Sure looks like it. According to a bunch of front-page news stories, life-insurance companies are about to get TARPed. This is nuts.

The public is clamoring for an end to TARP and bailout nation. That’s a key message coming from the heartland tea parties that are cropping up spontaneously around the country.

This is turning into a real populist uprising against rising taxes (especially state, local and property taxes), TARP and all the federal bailouts — and the trillions of dollars of deficits and debt being used for financing.

If Team Obama ignores this uprising, it has a political tin ear.

While commercial banks of all sizes are increasingly profitable and want to pay back their TARP money, the Treasury Department is now proposing to extend bailout funds to life-insurance companies, most of which are in no danger of failing.

And for those that are in danger, surely it’s time for a bankruptcy proceeding instead of more taxpayer money.

We are already on the hook for banks, GM and Chrysler, and lube jobs for guaranteed government-backed GM warranties. And the banks themselves may go to war against an Obama administration that wants to maintain control over the big-bank sector and prevent these financial institutions from paying down TARP.

[Lube jobs.  Hehehehehehee...  Sorry, Beavis and Butthead moment.]

It’s as if Team Obama is saying: “Don’t worry about the taxpayers. Just keep expanding government control over the economy.”

And now comes life insurance. But when will this country stop saving losers and start rewarding winners?

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