socialism

For a country which doesn’t like to hear the term ‘Socialism’, the US government backed bailout of insurance company AIG is exactly that: pure unbranded socialism. Politically the government might have given it a spin saying that this was a bailout of AIG’s consumers and insurance policy holders and not the shareholders. The fact however remains that this bailout was necessary to prevent a bigger stock market crash across the world. Had AIG not been saved by the US Federal Reserve, the ripples would have been massive for the Indian markets because apart from the obvious global impact, AIG is also an important stock holder in many Indian equities.