The Federal Reserve is bailing out AIG to the tune of $85 billion. Ever wonder where the money to do deals such as this comes from?
In this case the bailout will be paid for by a special bond sale by the Treasury to the general public. Or to put this another way, the full faith and credit of the United States of America is being used to raise money to support a company that no private investor would touch with a pole.
Every payday I give this government 25-30 percent of my hard earned income in hopes it will use this money to support my future. But now I’m beginning to wonder: Is this a prudent investment?