Fed Investments

Based on the Fed deciding to 'loan' $85B to AIG today, and also own 79.9% of the firm does not compute.  It seems they now own the majority of the largest insurance company in the world, adding to their portfolio of FRE and FNM.  I can't imagine how much more debt they are exposed to with insurance liability along with being exposed to several trillion of mortgage guarantees. Is there a limit as to how much this country can create by printing money and still look 'stable' as the S & P recently determined? Is there an invisible line that we are close to crossing to the point of no return where the market will determine the direction of the financial system?  If so, that means the collective consciousness will have the power.  Thoughts to consider as we enter day 3 instability with the stock prices of the financial sector.