Now American International Group is in serious trouble; they are asking the Fed for a $40 billion loan in order to stay afloat. Its stock has fallen 79 percent for the year, and its future solvency is now in doubt.
It's hard to say what this means if the Fed does bail out AIG, or what will happen if they go bankrupt. Either scenario is a nightmare. We are in very, very serious trouble, folks.
Good thing they gambled those mortgages on the stock market. Hooray for de-regulation! The magic of the market!