Wow! Even I didn’t have an imagination for the amount of cash that AIG is vaporizing. It has gone back to the government for another 21 billion bringing it’s “loan” (which will never be repayed, I suspect) to a total of $143 billion in just over a month! This is all to pay off bad bets on Credit Default Swaps. Way to go, AIG! Sounds like they were the sole counter-party to every CDS.
Of course this is NOTHING to worry about because the U. S. only has to borrow $2 trillion next year. Let me see, we owe $11 trillion, so basically we have to take our total government debt built up over 50 years and add another 18% in 1 year. Sounds like we are fiscally insane….oops, I meant slightly over-extended. This would mean that in the conservative, Republican years, we will have increased the government debt by oh, 60% or so! Now that is what I call, conservative, fiscally responsible government, baby! Congratulations George Bush!