Stocks tumble after government bailout of AIG

NEW YORK - September 17, 2008 - The market's losses are nearly on pace with those seen in Monday's nosedive and investors are seeking the safety of hard assets and government debt. Gold, oil and short-term Treasurys are soaring.

The Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company after it lost billions in the risky business of insuring against bond defaults. But the move has failed to reassure investors.

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