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Oct 27 2009, 5:30 pm by Daniel Indiviglio

At this point, I don't think that many doubt that taxpayers are generally not on the better end of the deal when it comes to government bailouts. Still, an article today on Bloomberg accentuates this belief. It explains how the New York Federal Reserve gave banks that had credit default swaps (CDS) with AIG 100% par value to retire the derivatives, essentially ignoring the market value. This is disturbing for a few reasons.

Background

First, a let me provide a little background for anyone who is unfamiliar with the situation I'm referring to. During the height of the...