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GM is NOT too big to fail?

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(update) CNNMoney appears to agree with me. When did I sound like MSM (main stream media)?

Obviously, that’s how the US goverment thinks. When bailing out the AIG, they were saying AIG is a systematic important institution, and they just could not let it fail. And here is the bailout (handout details).


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The great bailout of 2008: bail, baby, bail

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aig bsc fnm fre leh mer logo

March 16: Bear Stearns, $29 billon

Sept. 6: Fannie/Freddie, $200 billion

Lehman Brothers: sorry baby no bail

AIG: $85 billion

Who is the next???

Essentially Fed/Treasury are transfering the downside risks from individual companies to the fed/treasury/greenbacks. Note the money pledged to support Fannie/Freddie/AIG could exceed the original number if the problem worsens.

I can only say: gold, baby, gold!

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AIG IS too big to fail

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At least that’s what Fed chairman Bernenke and Treasury secretary Paulson think, and the congress and president agree with them. But how about the shareholders and we the tax payers? The AIG shareholders are almost wiped out (slightly better than Fannie and Freddie), and the price tag is $85 billion for now.

So summary, the price tag of recent big financial firms fallout.

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