President Obama's press conference two days ago highlighted why we're giving bailout money to AIG. Essentially, he admitted what we've all been suspecting: we're footing the bill to prevent massive losses that "banks" have hedged on bad bets. Watch the video below.
What still isn't clear is who these institutions are that AIG has been giving money to. Even Congress doesn't know. I bet Geitner does. That's my bet.
Obama states in the video, in so many words, that we are having to do this to keep ordinary folks from losing their 401ks. How do we know that the institutions AIG is rescuing handled 401ks, or exactly how much risk was posed to the little guy, if we don't know who these institutions are?
His statement on AIG's use of the funds is more than halfway through the video.
Discuss.