If the bakery cannot operate, maybe the Treasury will step in and bail it out, too. Nationalize the country’s bakery industry!
I don’t know if I am being overly optomistic, but the loan to AIG is not technically just a lost cause. If the operations can be salvaged, and premiums in excess of losses begin to replenish the coffers, the loan can be paid back to the US. That leaves a stake in a very valuable company for resale. There must be some mortgage backed securities in this mix somewhere that are full of foreclosures. Around Phoenix, these are beginning to sell pretty briskly and for fairly decent prices (read that, not necessarily in the tank).