Depressing but important article on AIG

Of all the financial debacles of September 2008, the most infuriating has to be AIG.  One, because as an insurance company it was suppose to be in the business of providing stability for the risk-laden world of financial wheeling and dealing but instead it destroyed that stability and two because its the the debt that keeps on giving.   Taxpayers have spent $150 billion already on this monster and there is talk that we will spend another $100 billion more before the company stabilizes.

Worse, as Joe Nocera explains in his great column about AIG, the government is propping up the insurer’s bad lending practice because if it doesn’t, it risks destroying the fragile modicum of stability in the financial markets.

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