The indignation over AIG will serve a useful purpose if it focuses public attention on the much larger issue of the failure of the entire approach that Tim Geithner and Larry Summers are using to rescue the banking system.
There has been talk about appointing a new "Systemic Risk Regulator." This "Super Czar" would oversee all of the financial services industry. We had a "Super Czar" last year. His name was Henry Paulson.
It's not the government's job to make stocks go up. It's their job to ensure stability and confidence to counter the fear and panic now so prevalent all over the world. Markets will find their own equilibrium when that happens.