It is a good story describing the "panic" of a lot of very high rollers scrambling to get their life jackets on and to rearrange the deck chairs (their personal interests) as the ship (which they themselves torpedoed) is sinking. IT GIVES ABSOLUTELY NO CONTEXT pertaining to the ROOT CAUSE of the crisis. It can be pinpointed EXACTLY to legislation DESIGNED to cause this event. PLEASE DO NOT REVIEW THIS WITHOUT CHECKING OUT MY LINKS BELOW. The new Republican "contract on America" legislation in 1995 was the torpedo. Even the staunchest Republicans of Money Magazine were begging Pres. Clinton to veto what Dole and Gingrich were congering up.

This article does not do anything more than repeat the same pastiche of disjointed assertions that are already filling re-cycling bins. The premise of the article 'changes course' is also not accurate. A 'no' turning to a 'yes' was about continuous consideration of the global impact of AIG's failure to secure bridge financing from a source other than themselves. Where are the quotes from the free-market theorists ?? Grover Norquist ? William Krystoll ?? Paul Wolfowitz ?? Ralph Reed ?? Where are the claims of the neo-con think tanks about small government ?? The article fails to connect the 'changes course' assertion to what happened. Changes course - yes - indeed - but it isn't about AIG - its about a philosophy that began with ... More »

Clear explanation backed by good information. Although the legs of this still-to-be-revealed financial mess goes back before Bush, it was neocons who wiped out regulation to turn loose its free-market follies. Everyone had a good time, made lots of money, and never gave a second thought to consequences. In The Huffington Post, the title of John Neffinger's article says it all: "If McCain Had His Way, That'd Be Our Social Security Money Wall Street is Losing. No one has the slightest inkling as to how many more institutions are going to fail.

The article does a good job of presenting the arguments for the bailout. It notes the regulatory gap which allowed what more and more looks like fiscal catastrophe to happen. But I think what is missing in this and other coverage is that at some point every institution involved in these messes will need to do massive revaluing (downward) of assets. Apparently AIG has divisions that are doing well and can be sold to raise capital; obviously Lehman had, too. But the current situation is just one more in a long history of financial 'panics'. Somehow all these savvy free market people in the private sector can't seem to recognize a bubble when they're inside one! Aren't they glad there's a government to rescue them.