AIG went from a market capitalization of more than $200 billion to a public float of about $1 billion, representing little more than the option value of a speculative bet on the company's future. The sum of AIG's lost market value and its bailout fund is almost half the value of the recently passed national stimulus package. Has the government really made the case that failure to satisfy AIG's counterparties would result in greater societal harm than spending $170 billion on what were private obligations?