When All Else Failed: Govt. Bails Out AIG to Avoid Catastrophe

People who comment that the fed will receive 11% return should think more clearly. If there is a default, just like any other loan, the lender gets screwed, Lender is we the people. Also, this is far from over, the taxpayer will be on the hook more and more. Just think, all this happened because the govt thought it was a great idea that ALL Americans should own their own homes, the chicken in every pot theory. All these problems stem from the residential mortgage market. Almost hard to believe. Mortgage defaults are still going to climb in the next year. As unemployment rises, home values continue to drop, and with that the lack of ability to refinance, the worse is still coming. For six years banks loaned to unqualified people to buy obsenely over priced houses. Stated income only, no money down, cash out at settlement using piggyback loans. Amyone with an ounce of common sense had to know this was a bomb waiting to go off. And they did know, just look at how they packaged these loans. Talk about creative financing. Then sold all this bad debt throughout the world with a AAA rating. It is a criminal activity and many should be thrown in jail. Instead they get bailed out. Only in America this could happen, really..

When Obama gets elected, we can all pretend to work and government can pretend to pay us. Nirvana - Communism!

LMFAO "we make money off this" Perhaps people are unaware the Fed issues every $ into the economy at interest so there is no way to ever pay them back in full the deficit will continue to spiral up and up. The only ones making money are the FED's private shareholders. Seriously watch zeitgeistmovie.com and you will recognise a pattern from history.

Stop whining and use what little freedom you still have left before it's too late. Never elect an incumbent until they actually start to reduce the amount of corporate money circulating in politics!

This was all caused by the Democratic congress

Use what little freedom and control you still have left before it's too late. Never elect an incumbent until they actually start to reduce the amount of corporate money circulating in politics!

Use what little freedom and control you still have left before it's too late. Never elect an incumbent until they actually start to reduce the amount of corporate money circulating in politics!

What I want to know is why can't I get 11% interest on my money.

Whit Chambers, what is your obsession with communism? It seems like you worship it. Did you work with Stalin when commiting genocide?

Listening to Paulson, Bernanke - "Prosperity is just around the corner"...they will do anything for a one-day shot to prop up the stock market, hand over the keys to Washington itself if that would jump a 2-hour rally in the market.. They think that propping up the stock market solves the whole economic problem. Wall Street CEOs call Paulson and Bernanke and practically tell them what to do. Then the feds hire them again to advise them on how to bail out AIG, Fannie Mae, etc.

I find it amusing that everyone wants small government and big capital (in the form of corporations). However, we're now finding that big capital is "too big to fail," and small government doesn't have the money to bail them out. Personally, I don't think the government should allow anyone to become too big to fail, but the real point here is that the money has to come from somewhere. That means big government in the form of taxes. Of course nobody will ever raise taxes, and so the borrowing and printing of money continues for the moment.

They should sell of Stowe Mountain Resort off first then every other"playground" they have to recover from stupidity!

All I can say is "WTF"?? Don't the TAXPAYERS have ANY say in this kind of BS bailout? This HAS to be UNCONSTITUTIONAL! It certainly is COMMUNISTIC!

The root cause of this whole mess starts with 2 things. Greed, and business ethics especially in the mortgage industry. Look at all the custom loans for people buying houses way out of their price range. The C.E.O'S of the credit card companies new this was coming why do you think they lobbied so hard to get the bankruptcy laws changed??? I'm just very disappointed in the ethics of american business these days! Now its time to pay the piper..... Now we the tax payers are footing the bill! Hopefully some positive changes will come of this

Steve A, why do you think this is all the Democratic controll congress fault. Are you telling me this started four years ago?

Who's going to bail out the dollar when it crashes?

was AIG a FDIC company? Let me guess...the executives will all get a big bonus while 10,000 people lose their job? Why are our tax dollars saving greedy, stupid bankers and investors who have created theis mess? Does the federal Government even have the legal right to do this if they are not federally insured? What a mess. Why not just have a giant do over...Ok everyone back to their homes and we'll deposit 100,000 dollars in your account...bad news is gas is $50 a gallon and Bread is $75 a loaf...by bailing everyone out they are runing the dollar...why is gold going up so fast? You have Idiots...running the other idiots!

Will someone get John McCain and tell him to give another speech on how the economy is strong, I need a good laugh.

There should be some kind of vigilanti justice for all these schmuks.... if a CEO can destroy thousands of peoples life by running the company into ground... and then walks away with Golden Parachute... I say he should be given a golden bullet straight in between the eyes as restitution for all the wrongs done!

The Fed actions sort of remind me of the mortgage industry actions. Putting too many of their eggs into high risk investments. What happens when the fed can't meet the obligations it just took on (print $ ?). Man, we are in deep. Who is going to finance this ? (better start learning Mandarin). Interest rates will be going sky high.