The Fed Comes to the Rescue Again!!

AIG’s troubles, similar to its Wall Street peers, stem from guarantees it wrote on mortgage-linked derivatives that have left it with a total of $18 billion in losses over the past three quarters as well as its stock price having fallen more than 91% so far this year.

As of yesterday, the Fed has agreed to loan AIG some $85 billion for a 79.9% stake in the company. Whew! Now that’s what I call a rescue! Get those printing presses running! They say that the loan will be repaid with the sale of AIG assets and not with taxpayers dollars. I don’t agree with this. I tend to think that the taxpayers will just continue to pay for the greed and mismanagement of assets that these companies have been running on for years.

Any thoughts on this?

Source: http://www.reuters.com/article/marketsNews/idINHKG1540020080916?rpc=64