Tuesday, September 16, 2008

Bailout Nation

CNN has noticed that money is beginning to flow to private enterprise. The lead story as I write this:
"Fed rescues AIG with $85 billion loan:
In an unprecedented move, the Federal Reserve Board is lending as much as $85 billion to rescue crumbling insurance giant AIG, officials said Tuesday evening. In return, the federal government will receive a 79.9 percent stake in the company, CNNMoney.com reports. Officials decided they had to act lest the nation's largest insurer file bankruptcy."
While it doesn't contain a discussion about moral hazard and the like, it will certainly get the notice of nonfinancial folks.

Random Observation in the wake of the Bailout: I've noticed that several blogs are now calculating how much money the Fed has left, and when it will need its own bailout. Seeing these comments on public blogs is not good for confidence.

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