I don’t think he’ll come out unscathed. Geither will be the scapegoat and take the fall, of course, but I think that Obama will take a significant hit in terms of public opinion...assuming the media covers it. Given the circumstances, it should be a major blow to his credibility among anyone with any shred of political objectivity.
Checking the MSM today (needed lysol after the trip) even they aren’t spiking this story, it’s too big. Many are even reporting that Fannie and Freddie will be giving out bonuses.
I think what happened was a group of reporters seeing Obama’s falling numbers believed, initially, that the AIG story would draw public support to Obama and against AIG (evil corporations and profits type thing) instead it backfired on them, both Obama and AIG took hits.
Now, the story is too big and too out there for them to retreat. Until those in power figure out who will be the scapegoat in all of this, the media will give just enough information to satisfy the publics “needs” but not enough to hurt Obama more.
Once the scapegoat is decided I fully expect complete and utter destruction on that person by the media.
IMHO, ever red-blooded patriotic American who votes should write their Congressmen and Senators, at state level too, and demand that any elected official or candidate that received one penny in 2008 from any corporation that received bailout money from the US Treasury (which is totally unConstitutional) hand it back to the government to be put back into the central bank or general fund worse case.