How come people are not raising red flags over the federal reserve takeover of AIG?

[Mattk]

Mattk, you mean the govt. is supposed to nationalise debt?

Economically, a bad idea, but responsible government involves ensuring both economic and social stability. Nationalising debt seems to be a logical stabilising measure to ensure no massive depressions in the economy occur. If all these banks and NBFIs crash and burn, you'll have a large hole in the financial sector in terms of both economic and human capital.