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AIG was an insurer of financial products that it HAD to pay back. If AIG didn’t pay the stuff back, most of the banks in the US and globally would have failed, shut down.

Do you know how much AIG is on the hook for? How many trillions? Is the US Gov now stuck with that? Sorry, bud, but I don’t support bankrolling an irsurer who got stupid. If these banks fail as a result, tough luck—its still a net savings for the taxpayer. They should shut them down too—others will eventually take their place.

I don't like it either, all I'm saying is that the financial system as a whole would collapse. AIG falling would trigger a domino effect among the bad banks and then the good banks and even the main street small banks would fail. No others would take their place for maybe years to come. Industries would shut down as there would be no short term credit. Ditto for all other companies including farmers. Utter destruction financially is what we're talking about.

I'm sure you'll say that this is all hyperbole -- however, by financial theory, that is exactly what would happen. Logically, that is also what would happen