Treasury will not provide financial assistance to A.I.G., so the Fed steps in.
NYT: "The Federal Reserve is said to have asked two investment banks to put together $70 billion in loans to help prop up A.I.G."
The U.S. Treasury spends $12 billion a month to fund the Iraq war and "surge", and for what? If the U.S. withdrew it's troops, it would have an additional $12 billion to help assist U.S. taxpayers and our failing financial institutions.
I don't believe in government bailouts, and many say Wall Street caused it, so let them suffer, but this crisis wasn't caused by Wall Street alone the lack of government regulation play a significant roll.
Its the government's job to regulate financial institutions. The last time the government grew lacked of it's regulatory duties, the "Great Depression" ensued. Obama is right this is the worst financial crisis since the "Great Depression". Greenspan concurs.
For the last five years, we've been distracted by the stupid Iraq war and "terrorism".
For the next couple of years we may pay dearly for the government's laissez-faire regulatory policies with regards to the housing mortgage market, especially if the public looses confidence in the U.S. financial institutions.
Consumer confidence is key.
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