In September of 2008, the Federal Reserve announced a bailout for AIG, which had gone bankrupt after

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In September of 2008, the Federal Reserve announced a “bailout” for AIG, which had gone bankrupt after having its credit rating downgraded in the wake of the financial crisis of 2007–2008. Can you think of an argument against such a bailout that is related to the material in this chapter? Where’s the information asymmetry?
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Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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