AIG Bailout: That Worked Out Well.

See if this makes sense:

1. In September, AIG Inc. borrowed $85 billion from the U.S. government which got in exchange a high-interest rate and an 80% interest in the company.

2. In October, in order to address growing problems at AIG, Uncle Sam loans another $40 billion.

3. In November, the U.S. invests another $40 billion in capital, for a total package of $150 billion. CEO Edward Liddy (appointed by the government) said that AIG was "on the road to recovery

4. Today AIG announced a $62 billion 4th quarter loss, the largest in U.S. corporate history.

5. Today the government announced it will increase its stake in AIG by $30 billion, while relaxing the terms of repayment to the taxpayers of AIG debt.

6. The government said that the cost of doing nothing "would be extremely high" while admitting it doesn't know the real risk to taxpayers of doing "something." This is the same argument it made $80 billion ago.

7. The total amount of TARP money available to AIG is $70 billion, 10% of the total TARP program. The likelihood of more AIG bailouts is high, according to economists.

8. AIG is subject to the restrictive compensation limits imposed by the "stimulus" package passed last month, which may actually harm its ability to retain its hghest performing employees, according to the company.

9. Citigroup has received $50 billion and Bank of America $45 billion in Treasury money. In addition the government has guaranteed hundreds of billions of potential bank losses.

10. The government is now in the insurance business, the banking business, the auto business, the health care business, the energy business and likely to be in the radio talk show business.

11. Don't you feel better now?