Many people I've talked to and even in the media, there is a consensus that the Fed's bailout of insurance giant AIG was a bad thing. I realize that there are many companies still being burned by the subprime fallout. In my opinion, the Fed had to step in and help.
What many people don't understand that while they are helping AIG out by giving them billions of dollars, this is a loan and not a gift. The Fed is loan AIG this money at quite the interest rate. The Fed's return looks to be at an interest rate of 11.31%.
With over 74 million clients around the world, I think the Fed did what they had to do....to preserve the U.S. economy.