And the Wall Street socialism continues

The news worsens continually:

WASHINGTON — Acting to avert a possible financial crisis worldwide, the Federal Reserve reversed course on Tuesday and agreed to an $85 billion bailout that would give the government an ownership stake in the troubled insurance giant American International Group, according to people briefed on the negotiations.

[ . . . ]

If A.I.G. had collapsed — and been unable to pay all of its insurance claims — institutional investors around the world would have been instantly forced to reappraise the value of billions of dollars in debt securities, which in turn would have reduced their own capital and the value of their own debt.

[My emphasis. – NPO]

For reasons not worthy of mention here, I avoid “playing” the stock market; thus, I lack the sort of insight necessary to offer particularly insightful commentary. If I recall, though, risk inheres in trading. They took the risk; it failed to pay off. Make. Them. Deal. With. It. Furthermore, whyyyyyyyy is a quasi-governmental body purchasing eighty per cent of A.I.G.? Haven’t our leaders far more important ways to spend our money?

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