“the more than $90 Billion that AIG has paid out to banks from the bailout money”…what did people think was going to happen to the bailout money? AIG was in the business of credit default swaps–basically, insurance on business loans. The whole purpose of bailing out AIG was to ensure that it could meet its obligations–well, these were its obligations.

There is a reasonable case that the conventional insurance component of AIG should have been saved, and the derivatives-writing component allowed to go into Chapter 11 (or worse)