Probability of Losing Full $173B AIG Loan Increases

I hope everyone on Capitol Hill and the White House are feeling good about themselves for trying so hard to save $165 million because the probability is increasing dramatically that the AIG businesses will soon be worth very much less if they can be sold at all - and thus would kill any chance to repay the $173 billion that the government already fronted. From Riehl World View:

Obama and his team knew about the AIG bonus issue for quite some time. They had already concluded there was nothing to be done without causing greater risk. Now the very people AIG claims it needs to sort out the mess and prevent further economic damage are resigning, or just not showing up due to death threats and whatever else.

...company officials contend that the uproar is scaring away the very employees who understand AIG Financial Products' complex trades and who are trying to dismantle the division before it further endangers the world's economy. "It's going to blow up," said a senior Financial Products manager, who spoke on condition of anonymity because he was not authorized to speak for the company. "I have a horrible, horrible, horrible feeling that this is going to end badly."

But hey, the government just "saved" us $165 million. Ok.

*Update*
It looks like AIG just trumped the politicians by agreeing to pay back the $165 million. Ha - now they owe the government $173.165 billion. Checkmate. Now we can worry about the other $5+ trillion in spending that Obama is requesting. Let's see if Congress has the same outrage...