Yeah, it was making all the news yesterday....
Would it be arrogant of me to say that I wasn't surprised at all? I actually kind of expected that. Paulson said no to Lehman, but he didn't say no to any further bailouts. AIG had a huge hole in the balance sheet; one that no one in the remaining financials can easily fill. And yet, AIG is an wide-spread insurance group. So... what other choice is there other than a government bailout? Lehman was already quite a rattle, but I think the threat to the confidence and stability of our financial institution was simply too great with AIG....
Though I'm not seeing any more potential candidates at this time, future bailouts may still be possible. However, I think Uncle Sam is going to push for mergers and acquisitions from this point on. How much backing they're willing to provide to make that happen, well, we'll just have to see....
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