Gotta admin - I’m confused. It seems to me they should fail - but these are supporting financial instruments throughout our economy. Have any economists written a what if scenario if AIG did fail anyway??
It would be bad, but necessary. Eventually the market will have to correct itself in the form of a recession/depression but the longer we wait and the more institutions we “bail out” the worse it will be. We’ve been living far beyond our means with a completely consumption based economy that can not sustain itself.
Oh, I imagine at least a rough draft was done at the Fed.