Not too much of a surprise, actually. What is most worrying is that Monday morning Treasury and Fed said no-way on a bailout, and 36 hours later they are lending $85B. What exactly did they see on AIG's balance sheet that scared the pants off them?
I must say it is pretty punitive terms. AIG is going to be sliced and diced like a lechon at a Cuban Christmas Eve party. If it's sold quickly enough, we (the taxpayers) may avoid most of the pain on that one.
I'm a veteran of two careers - high school math and physics teacher, retirement consulting actuary - who is now enjoying the pleasure of staying at home for my daughter. (My avatar is in honor of Will Durant, whom I consider the last true sage.)
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The Fed just effectively nationalized AIG! Any thoughts?
Not too much of a surprise, actually. What is most worrying is that Monday morning Treasury and Fed said no-way on a bailout, and 36 hours later they are lending $85B. What exactly did they see on AIG's balance sheet that scared the pants off them?
I must say it is pretty punitive terms. AIG is going to be sliced and diced like a lechon at a Cuban Christmas Eve party. If it's sold quickly enough, we (the taxpayers) may avoid most of the pain on that one.
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