"I used to think if there was reincarnation, I wanted to come back as the President or the Pope or a .400 baseball hitter, but now I want to come back as the bond market. You can intimidate everybody."
--James Carville
If Carville were to update his answer today, he'd no doubt substitute "AIG creditor" for the bond market.
In a world where equity investors have been chopped in half and and Lehman Bros. creditors were fed to the (bankruptcy) lions, AIG's creditors are being made whole. By the U.S. Treasury -- in other words . . . us.
So far, the amount paid out to AIG's creditors is approaching $200 billion.
The two questions dominating the "blogosphere" at the moment are: 1) exactly why are AIG's creditors being bailed out -- at 100 cents on the dollar, no less?; and 2) who are they?
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