Don't cry for me, Argentina...

[randomness]

According to Brad Setser at the Council on Foreign Relations, the "$155b in [Lehman's] outstanding bonds significantly exceeds Argentina’s outstanding stock of bonds at the time of its default".

But hey, that's yesterday's news, right?

Today's news is that the Federal Reserve caved, and is putting up $85 billion to rescue A.I.G., in exchange for an 80% stake in the company. The Fed's "no bailout" policy lasted all of two days. Sucks to be you, Lehman Brothers.

We the people have just bought the biggest insurer (by assets) in America.

I wonder what we'll get the chance to buy next.

Edit: The FT says AIG is the "world’s largest insurer by assets".

Comments

[stolen-tea.livejournal.com]

Although, really, shouldn't the insurer of last resort *be* the government? I mean, sure, regular insurance should be through private companies, and there's probably even room for a second layer of private insurance (for the first layer of insurance companies, in case things go really bad in particular ways). But ultimately, when we get hit by a disaster that damages all insurance companies roughly alike, the second-order insurance companies simply aren't going to have the resources to deal with it. The only entity that can plausibly deal with it is the government, so why not just make that official?