The Government Bails out AIG

Looks like the United States Government finally realized the financial mayhem that would have been caused if it would have allowed AIG to fail. The government decided to bail out the large insurer by offering them an $85 billion short-term bridge loan.

I guess now most people are wondering why the let Lehman die and not AIG. Well, the answer is obvious. Lehman just doesn't matter. Too many firms worldwide have exposure to AIG and imagine the collapse that would come if it would have failed. Yup, lots of payouts of credit default swaps. Hey, let's not forget that it was the repo market that ultimately put the bullet in Lehman's head.

Well, Uncle Sam, you've saved the world for now . . .

GOD BLESS AMERICA!