
You and I may not be able to get a little extra liquidity for our finances, but companies that are "too big to fail" are certainly getting help. (Apparently Lehman Brothers doesn’t fall into that category.) Even after adamant professions that the government wasn’t going to bail anyone else out, AIG’s likely fall has been averted.
The government stepped in last night to issue an emergency loan to AIG. While not a complete bailout (it is a loan, and the government says it needs to be paid back), it is still a helping hand. The government gets a stake of nearly 80% in the company, and the ability to mess with the executives.
How many more banks do you think will be "too big to fail"?
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