When the U.S. government bailed out AIG (NYSE:AIG) in 2008, the reaction from analysts at the time was very negative, with viewpoints ranging from skeptical to pessimistic to downright angry. But when looking at it in hindsight, the bailout proved to be an excellent investment by the government, resulting in a $23 billion profit. In this video, Motley Fool analysts Morgan Housel and Matt Koppenheffer discuss the idea of the potential moral hazard of a bailout, why the reaction was so negative to it initially, and what investors can expect from AIG now that it is once again completely independent.
Fool contributor Matt Koppenheffer owns shares of Bank of America. Fool contributor Morgan Housel has no positions in the stocks mentioned above. The Motley Fool owns shares of AIG, Bank of America, and Citigroup and has options on AIG. Motley Fool newsletter services recommend AIG. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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