Government gives $85 billion loan to AIG

This is from the Boston Globe.

AIG was given  an 85 billion dollar loan to help them stay in business, being the largest insurance company in the world, this could prevent further harms to the economy.

An executive from the fed said, "It could also lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance," (if the loan was not passed).

I for one support the move.