AIG's $173 Billion 'New Deal' With America

American International Group (AIG Quote) has finally accepted the fact, as we've been saying for weeks, that it's running out of cash.

AIG CEO Edward Liddy said in a company conference call Monday that AIG "cannot continue to hemorrhage cash. We need to stop it and stop it now."

The U.S. taxpayer is now committed to its own "New Deal with America" with the insurer via a restructured bailout for AIG that stems the Federal Reserve's continuous dipping into the taxpayer-funded coffers of the U.S. Treasury in exchange for 77.9% of AIG. ...