Fed Rescues AIG

On Tuesday, the US Federal Reserve bailed out mortgage giant AIG by taking over the company. To do so, the government agreed to an $85 billion price tag.

Speaker Nancy Pelosi reacted sharply, saying the debt was "just too enormous for the American people to guarantee".

Ach - it's not so much.

We've already spent $100 billion in Iraq this year.

That's like buying a Lexus and then balking when your spouse says 'honey, we need a new washing machine'.