Wednesday, September 17, 2008

Post-AIG "bailout"

Odd as it might seem, I think it's a good thing that AIG and other financial stocks are falling in the aftermath of the AIG deal. If the transaction really were the bailout that free-market types are decrying, then we'd quickly see investors responding with relief. But a transaction that imposed stern loan conditions, including that AIG's managers leave, and which is probably a prelude to the company's liquidation, is not really as coddling as the term "bailout" suggests.

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