Posted On: December 3, 2008, 1:03 pm CST

Posted By: John Smith

I strongly question the fairness of the repeated, soon to be continual, propping up of AIG with hundreds of billions of taxpayer money.

And I'm not even talking about fairness to taxpayers. I'm talking about you, and me, and companies that work for a living, and previously had to face the giant that was AIG, and now have to face both AIG and the Federal Government in competition with the rest of the insurance industry.

Think about it.

With the govenrment throwing around billions and billions to AIG, what are the current motivations by senior management in issuing pricing and other market orders to its underwriters. Do you really think that AIG is going to care about squeezing a last dollar out of a quote? I think that, as rational actors, the motivations of AIG's senior management is going to be far, far different than the motivations of normal insurance industry managers.

Just knowing that every billion that the government gives AIG makes it harder and harder for the government to abandon you later on, just imagine the effect on pricing.

Think about it.