The Fed and Treasury are playing a shell game with the corpse of AIG, so as to avoid naming the counterpartiesties. The bail-out is to save the system or Europe, they claim, and because the counter-parties would be stigmatized they cannot be named.
Here is the way re-frame the issue and get out of the trap: By not naming individual major counterpar ties, the Fed and Treasury are stigmatizi ng the system itself as weak, and thus making Europe and the US into the targets to avoid rather than just a few big companies.
Bottom line: We're all stigmatize
Frankly, I had hoped, against hope, that Obama would somehow overcome the innate corruption of the system.
This has not been the case. He has brought onboard the same scumbag deregulators (Summers) and insiders (Geithner) that got us here, and he is continuing the Bush/Paulson practice of bailing out the Banksters. On this path, we are doomed.
I laughed like hell when morons like Hannity and his ilk started talking about the "Obama crash" right after the election - but I am no longer laughing. Obama is doing nothing about the root problem - over-leveraged, toxic banks tied together by CDS tripwires - and is instead spending us into oblivion.
Someday soon our creditors will start perceiving risk in our Treasuries; the yields they demand to roll our debt will increase - and it will be game over. The cost of servicing our debt will destroy us.