Someone pointed out to me yesterday that restructuring AIG does not work because it would bring down the financial system. There is definitely that possibility but suspending the mark to market rule would go a long way toward avoiding that. It would then be possible to set up a clearing entity to work through all the CDS and other derivatives that would be impacted. By supporting AIG we are simply pushing off that day of reckoning.

Someone pointed out to me yesterday that restructuring AIG does not work because it would bring down the financial system. There is definitely that possibility but suspending the mark to market rule would go a long way toward avoiding that. It would then be possible to set up a clearing entity to work through all the CDS and other derivatives that would be impacted. By supporting AIG we are simply pushing off that day of reckoning.