Satirist Scott Ott at the D.C. Examiner gives us the encouraging news:  Bail out working, AIG soon won’t be too big to fail

The Treasury Department announced today that the bail out of AIG Insurance, which began in September under the Bush administration, is working better than expected.

Encouraged by the company’s loss of nearly $62 billion in the 4th quarter of 2008, the Obama administration injected another $30 billion into AIG this week.

“The government stepped in last year with $150 billion because AIG was too big to fail,” said Treasury Secretary Timothy Geithner. “The stock was trading in early September at more than $20 per share.

Today it’s worth less than 50 cents a share. If we keep pumping billions of tax dollars into it, I’d say we’ll soon reach the point where AIG won’t be too big to fail, and then we can stop giving them money.”

Mr. Geithner explained that President Obama is using a similar principle in the housing bail out.

“By forcing banks to cut payments for irresponsible homeowners rather than foreclose, the value of all mortgages will continue to decrease until many banks will cease being too big to fail,” Mr. Geithner said.

Read the rest at the link.

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