article - The United States government decided to bail out...

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The United States government decided to bail out the insurance company American International Group before the U.S. government had bailed out the investor giants Fannie Mae and Freddie Mac; now they are at it again. It is the third company they have bailed out in the last 2 or 3 weeks. Initially they had decided against bailing out the largest insurance company on the planet but later decided to after realizing the disastrous affects that its bankruptcy would have on the economy, the stock market, etc. Eventually those consequences would trickle down and affect the common household. The Feds realized they could not let that happen. Instinctively they took action. This time they loaned 85 million dollars for 2 years to insurance giant AIG. In exchange AIG agreed to give up 80% stake to the U.S. government. Because AIG is the biggest insurer in the world, every analyst, specialist, and expert new that if it went down to the ground like Lehman Brothers Holdings Inc. it would have severe world wide consequences. The
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This note was uploaded on 09/08/2010 for the course BUS 10 at San Jose State University .

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article - The United States government decided to bail out...

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