Another day, another bailout.

Once you start bailing out failing companies, it is difficult to stop. The temptation to throw more good money after bad is simply too great.

AIG, the American insurance behemoth has already been bailed out twice by the US government. Newspapers report that the company is about to post the greatest loss in US corporate history. The fourth-quarter loss could be as high as $60 billion. A further cash injection is almost certainly necessary to keep the company afloat.

It is late to say this, but I will say it anyway. It would have been better if regulators had done their job and prevented the likes of AIG from trying to insure the world against credit loss.