September 16th, 2008

Don't cry for me, Argentina...

According to Brad Setser at the Council on Foreign Relations, the "$155b in [Lehman's] outstanding bonds significantly exceeds Argentina’s outstanding stock of bonds at the time of its default".

But hey, that's yesterday's news, right?

Today's news is that the Federal Reserve caved, and is putting up $85 billion to rescue A.I.G., in exchange for an 80% stake in the company. The Fed's "no bailout" policy lasted all of two days. Sucks to be you, Lehman Brothers.

We the people have just bought the biggest insurer (by assets) in America.

I wonder what we'll get the chance to buy next.

Edit: The FT says AIG is the "world’s largest insurer by assets".
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