We (.gov) didn’t give AIG 180 Billion. We gave Goldman Sachs, JPM, Citi, other banks and sovereign funds nearly 180 Billion using AIG as a conduit paying out their CDS. That adds no value to AIG but sure made all of the banks involved have record Q1 profits![/quote]
This is true. But… would you also have been in favor of canceling – or, more accurately, discounting – all of AIG’s insurance contracts where claims were due? My point is that if you don’t make Goldman, etc. whole – which is fine – then you can’t make Jane Q. Public whole on her husband’s (who just died) life insurance either. Everyone is made whole or everyone gets the same haircut. You gotta pick one.
