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people confuse morality tales with economics. Letting aig and the banks "fail" might feel good, but would be a disaster that would still be paid by the tax payers. It would completely freeze credit markets even more, disrupt the economy and with all certainty push us into a great depression. And the tax payers would either pay it all by losing all their savings, or pay it all through the fdic, or both.
It is very easy to say "let it fail" when one does not comprehend the consequences well enough. We are talking about the vast majority of the banking industry collapsing and taking any industry that needs credit in any way with them.
Now, I don't agree with what Obama is doing, because that is indirectly helping the shareholders instead of the clients. But the solution to that, which is to temporarily nationalize these institutions and resell them, is considered even worse by conservatives.
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