You're overreacting. The gov't is going to make money on this -- and lots of it. Essentially, the gov't purchased 80% of a corporation for $85 billion when the corporation's FMV, after the panic is over, will be well in excess of $150 billion. Or, if you don't want to look at it like a purchase, then it loaned AIG $85 billion, and it will get paid back, with interest. And AIG's assets are extremely valuable. It may sell them in order to pay the gov't back.
And the gov't isn't going to run AIG. Ignorant. The gov't is selecting the creme of the crop to run the corporation and replacing the entire board of directors. All private-sector folks. Paulson has his top-notch colleagues at Goldman (whom he brought to Treasury) leading the search for new leadership.
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"Now I say that I know the meaning of my life: 'To live for God, for my soul.' And this meaning, in spite of its clearness, is mysterious and marvelous. Such is the meaning of all existence." Levin, Anna Karenina, Part 8, Chapter 12
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