[StBernard] AIG and Fed bailout

[Westley Annis]

Here's an idea:


>From yahoo news:




After it became clear that the private sector would not come to AIG's aid,
the Federal Reserve Tuesday night stepped in and gave the insurer access to
as much as $85 billion. The offer is good for two years, but comes at a
steep interest rate of nearly 11.4%.

In return, the government took a 79.9% stake in the insurer and expects AIG
to sell off assets to repay the loan.


Well now since the govt owns 79.9% of the insurance company and is in the
insurance business, wouldn't this be a good time for the Feds to write
wind/hail coverage for the Gulf and Atlantic states that the private
insurers don't want to touch?  

Opponents of this have previously said the government shouldn't be in the
insurance business, but apparently they now are.

JY