AIG Wants Another Bailout – Where’s Rick Santelli When You Need Him?
The insurance giant AIG is back with its hands out, asking for yet another government bailout, the New York Times reports. At TPM, Josh Marshall raises an interesting question. Where does the bailout money for AIG — at $150 billion and counting — really go?
When we pour $10 or 30$ billion into AIG, it doesn’t vanish into thin air. It goes to someone else. Earlier evidence suggested that Goldman Sachs had massive exposure to a potential AIG bankruptcy. And it’s been alleged — though not on any harder evidence than a certain elementary logic — that AIG got saved in part because of people tied to Goldman who were running Bailout Inc. last fall.
Whatever the truth of that, I think it’s time we know more clearly where the $100 or so billion we’ve ‘loaned’ AIG so far went. (There’s been some data on this. But I don’t believe it’s been exhaustive or particularly detailed.) And where’s the next dollop of money likely to go? Whoever these recipients are, they are by definition companies that are in the capitalism business who made a bad bet on AIG, probably a lot of bad bets on AIG.
They don’t seem to be taking the hits, however. Taxpayers are the ones paying for the bad bets.
But let’s just ignore investigating all that and blame the whole thing on irresponsible homeowners instead. It makes for a better viral video.