The government bailouts of various companies is pushing us toward socialism. The federal government has purchased equity stakes in many financial companies and is "investing" in GM and Chrysler as well. Given the notable financial successes of the federal government such as Social Security, Medicare, and the Federal Budget, I think that Congress and the President are the least well suited institutions to decide how to invest capital even if we accept that it is a proper function of government. There is only one government institution well suited to and experienced with handling financially distressed companies and individuals: Bankruptcy Court. Through bankruptcy, the financially failing companies and individuals can either restructure their debt or liquidate assets and discharge debt in order to get a fresh start. This would allow assets to be properly valued quickly and would allow the economy to improve again based on realistic valuations of assets. The bailouts simply pos
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