Here we are, holding our breath again, waiting to learn whether American International Group can stay afloat amid rumors of a record loss in the fourth quarter, while wondering if Uncle Sam will once again come to the rescue. At least one insurer organization has raised the bigger question of whether the bailout is giving AIG an unfair advantage in the insurance market, and what impact that will have on healthier competitors in the long term.
The point may be moot, as it's unlikely Treasury and the Federal Reserve will just stand by and watch the country's biggest insurance organization collapse, especially after we've already poured some $150 billion of taxpayer funds into AIG to keep it in business.
While I supported the bailout when it was first put into effect, I worried about this becoming a bottomless pit for taxpayers. In for a penny, in for unlimited billions, right?
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