You may be tired of the government using taxpayer money to bail out companies that've made poor choices, but if the government doesn't help AIG, experts say it could affect tens or even hundreds of millions of people.
Wednesday, the federal government hoped to ward off a global financial meltdown by offering an 85 billion dollar bridge loan.
In the past six months, the government has also offered significant financial help to investment bank Bear Stearnes and Fannie Mae and Freddie Mac.
We're starting to really see just how deep credit debt is running in this country.
The Federal Reserve Bank is giving 85 billion dollars to American International Group to help keep it afloat. In return, the government will take over about 80 percent of AIG. Why is the federal government using your tax dollars to bail out yet another company that's made bad investments?
AIG is the largest insurance company in the country, with more than a trillion dollars in assets.
Trillion, with a "T."
If AIG fails, it could cause markets around the world to nose dive, since AIG has 74 million clients spread over 130 countries.
Republican Mitt Romney says his party's presidential candidate John McCain believes…
“When the Federal Reserve and the Treasury have evaluated a particular enterprise and conclude that its failure will hurt more people in this country than the bailout would cost, why then, of course, the right course is to help those enterprises stay alive.”
Prominent members of both parties are calling for better financial industry regulation. Democrats, including presidential candidate Barack Obama and House Speaker Nancy Pelosi blame the Bush administration.
“That has refused to regulate an industry where apparently all of the gain is privatized and all of the risk is nationalized,” said Pelosi. “And I just don't think that is a fair deal for the American people. Democrat or Republican, one thing is likely: soon, your tax dollars will be bailing out AIG.”
According to Rasmussen Reports, only seven percent of Americans approve of the government using taxpayer money to bail out financial institutions.
Two-thirds say just let the companies fail and file bankruptcy.
Forty five percent think the country may be facing another Great Depression.
It should be mentioned, this poll was taken just before the AIG bailout.