Big Boys

I am still trying to puzzle out what happened with this Great Credit Meltdown of 2008, and have a long way to go. As this point I'm skeptical. There is a problem for me in that smaller, well-run banks here in the Midwest would be surviving without all the government intervention, and smaller, well-run companies seem to be doing OK - reducing headcount, yes, but meeting payroll with those who are left.

And we are going to provide over $100 billion to keep AIG intact.

What gives? I think there are just too many big institutions that are creditors of AIG, and they just don't want to lose big money. There was a commentator on the tube today saying that if AIG liquidated, it'd be a fire sale. Buyers would get AIG assets for 20 cents on the dollar.

A. So what?
B. 20 cents on what dollar? A dollar based on 2007 valuations?

I hate it when left-wing slogans turn out to be right. But man, as of today, it really looks to me like we are nationalizing losses. And the really big boys - AIG's creditors - can't face a true, market-clearing, bottom-finding liquidation.

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