9/16    Fed to loan $85B to AIG while it sells its assets, since no one else
        wanted to lend $85B.  Hopefully the Fed gets back $85B--it's not clear
        how long that may take (loan is for 2 years but may be extended).
        \_ How the hell does the Fed have the power to make $85B loans without
           congressional approval?
           \_ exigent circumstances necessary to maintain stability of the
              financial markets
              \_ 85 BILLION!  That's a pretty amazing amount of money.
                 \_ We spend more than that in Iraq every year. The Pentagon
                    as a whole spends that every two months.
              \_ Financial markets are too fragile. We should clamp down
                 on this money is debt shit like from that one video.  Is the
                 inflated money supply from bank credit really worth the
                 fragility introduced by their complex webs of interdependent
                 debt relationships?  So much of the economy is built on top
                 of speculative vs. real assets.
           \_ The Fed is a private entity, and is arguably the most powerful
              organization on earth (even more so than the US gov).
        \_ No one else has $85B to lend.
        \_ correction:  up to $85B, it's like a HELOC.  Interest rate is 11%
           on outstanding balance.  regardless, Fed gets 80% equity (diluting
           existing). -op
           \_ URL?
              \_ http://www.federalreserve.gov/newsevents/press/other/20080916a.htm
        \_ BAIL OUT IS THE NEW IPO! Company in trouble? No problem! Just
           keep spending. We'll get a bail-out... perfect exit strategy.
           The more companies require BAIL OUT, the hotter it gets. It
           is just like the dot-coms. BAIL OUT NOW!
           \- i'm not an expert on this, but based on recent and not so
              recent history BEAR STERNS almost certainly "deserved" a
              bail out less than LEHMAN [BS played a very "me first" role
              in various past episodes like the LTCM intervention (speaking
              of people who didnt derserv a bailout) as well as in the lead
              up to the eventual collapse]. LEH was a slightly better citizen.
              But unfortunately "just deserts" has little to do with the
              decision making. AIG is a quite evil company too, but its
              hard to be gleeful over this ... although I am pleased to
              see the self-serving probably criminal HGREENBERG taking a bath.]