My take on the AIG bailout

I have been neglecting my blog for the past few days in favor of trying to get a good grasp of the latest events, and it seems that the more I read the more confused I get:) For example, I am still not sure I understand Fed's definition of liquidity versus solvency (in fact, I am not sure whether the Fed does either), but here is what the AIG bailout means to me...

EDIT: WSJ Real Time Economics just made me remember that the sponsor of Newcastle is Northern Rock, which was taken by the BOE earlier on. So the March 9 matchup between ManU and Newcastle will effectively be "battle of the central banks"...