Will the taxpayers be on the hook for all of the money? Actually, I think the assets of AIG are actually going to be able to cover most of the bets made, as they are darned good and can be sold over time, not fire-sold.
It’s a horrible thing, but it is less horrible than every other option I have heard.
Let’s see now what the bears have to complain about other than we have now nationalized about 60% of the financial system. We are not all Keynesians now, we are all Communists now!