I just checked the stock price of AIG and it is less than $4/share and there are less than 3 billion shares of outstanding stock. That means the entire company is worth less than $12 billion.

So why is the Bush Adminstration paying $85 billion for an 80% share of the company that's worth less than $12 billion?????

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Soldiers swear to protect and defend the Constitution with their lives.

Politicians swear to protect and defend the Constitution with someone else's life.

They are not paying $85 billion for anything. The Federal Reserve loaned AIG $85 billion, at 11% percent interest to help them remain solvent. Which means that if they payback the loan, we will have made a tidy profit of just over $8.5 billion.

-traveler-

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"I have come here to chew bubblegum and kick ass... and I'm all out of bubblegum."

-Nada-