AIG and Banks, Bad Precedent?

Economically speaking, I understand why Bernanke might make a move to save banks, due to the fact that banks are critically tied into the economic tool of monetary policy. Not to mention the fact that a lot of companies, business, and the liquidity of the economy can be impacted by a big bank’s disappearance. That said, our government’s move to save a non-bank entity (AIG) on the other-hand, I don’t quite understand. Overall in the scheme of things, although great for saving our economy now, I hope it doesn’t set the precedent that if you get big enough, and you fail, the government will bail you out. If that mentality ever gets established it’ll encourage a lot of corporations to not properly manager their organization and take risks that they shouldn’t be in the first place.

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