The Federal Government Can't Always Hold Your Hand

Link to article, Wall St.’s Turmoil Sends Stocks Reeling, Alex Berenson, 9/15/08, The New York Times

The stock market has recently experienced some major financial blows. "The Dow fell 504.48 points, its biggest one-day point drop since Sept. 17, 2001, the first trading day after the Sept. 11 terrorist attacks." The banking company, Lehman Brothers, and the insurance company, A.I.G., recently declared financial bankruptcy. In a mass state of panic, investors withdrew much of their stock from the companies, sending the stock market into a downward spiral. Many Americans are questioning whether the federal government should bail out these companies or refrain from taking any direct action that would impact the stock market.

It is not the Federal government's responsibility to clean up the mess that is the stock market. The individuals that invested in either Lehman or Merrill Lynch, must take accountability for their own investments. When making buying stock you are always gambling on how well your stock will do, so by investing in a company you accept the risk of losing money. Companies must learn that the Federal government can't always be there to hold their hand, the companies are solely responsible for their own current situation. If the Federal government refrains from taking action, they will send a message to all companies that they must take full responsibility for their own actions.

*Reedited on 9/25/08