Reply #16: Not unless they are worried about someone spilling the beans.

[Skwmom]

Did AIG engage in the underwriting of insane insurance policies to guarantee investments in real estate instruments b/c they were so stupid they thought it was a great idea OR was AIG used as a means to make all of the big investment players whole (i.e., did they write the insurance policies to make the American taxpayer pick up the tab for all the lousy investments).

Something about the official AIG story just doesn't make sense. I wonder how many wealthy investors would have went bankrupt if their real estate investments had not paid off?

We are constantly told they had to keep the credit flowing. Well, why couldn't the government get credit flowing through local banks or through setting up its own "bank?"