AIG: All is Good

Well, All is good from AIG’s (American International Group, Inc., stock ticker=AIG) perspective, since $85 Billion dollars in taxpayer money will be pumped in to the company to rescue them. Well, at least the US taxpayers have an 80% stake in the company I guess. AIG sells insurance among other smaller businesses and holdings, and obviously has done a bad job mitigating risks.

So, how can the Federal reserve just print money out of thin air like this and get away with it? Good question. In essence they increase the money supply, and devalue every dollar in existence, including that money in your wallet, purse, or bank account. It obviously sounds like a fleece on the American taxpaying public, but many could argue that allowing them to collapse would hurt the American public more, in loss of jobs and various other factors.

Stay tuned to a radio near you, many more bailouts are on there way and it wouldn’t surprise me to see a bailout of WaMu in a few days to come.

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