I just saw this: Fed in AIG rescue – $85B loan

NEW YORK (CNNMoney.com) — In an unprecedented move, the Federal Reserve Board is lending as much as $85 billion to rescue crumbling insurer American International Group, officials announced Tuesday evening.

The Fed authorized the Federal Reserve Bank of New York to lend AIG the funds. In return, the federal government will receive a 79.9% stake in the company.

Officials decided they had to act lest the nation’s largest insurer file bankruptcy. Such a move would roil world markets since AIG has $1.1 trillion in assets and 74 million clients in 130 countries.

An eventual liquidation of the company is most likely, senior Fed officials said. But with the government loan, the company won’t have to go through a tumultuous fire sale.

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Update: Here’s the vote on HR 6899.

CNN reports that the House OKs bill allowing more offshore oil drilling

WASHINGTON (CNN) — The House of Representatives on Tuesday night passed an energy bill clearing the way for more oil drilling off U.S. coasts, but not nearly as much as Republican leaders wanted.
The bill would expand offshore oil drilling, but not to the extent that many Republicans want.

The bill was passed by a vote of 236-189.

Many Republicans opposed the bill because it would allow new oil drilling only between 50 and 100 miles offshore. Republicans generally want to allow new drilling starting 3 miles from shore.

Republicans also objected to provisions repealing tax cuts for the oil industry and what they said was a lack of incentive for states to allow drilling on their land.

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Dr. Jeff Masters has a couple of photos from the Bolivar Peninsula and a link to the source.

The USGS took coastal pictures on September 9 to be used for a comparison to determine the damage caused by the storm. The arrows on the pictures are used to show that, yes, the pictures really are the same location because the Peninsula has been scrubbed nearly clear by the storm surge.

On the coast it is the surge, not the wind speed, that determines the damage. A full-blown Catergory 5 wind can’t do what a wall of water can do. Consider the difference between a leaf blower and a fire hose – which is going to knock you down?

Dr. Masters also looks at the rest of the season and essentially says we are in a lull, but it isn’t over.

Gulf Coast Music

Margaritaville
Crossroad
Born On The Bayou
Ma ‘Tit Fille
Freebird
La Grange
Texas Flood

Steve’s friend put up an update at 12:29PM and they are still without power, and Steve’s back-up plan to use dial-up on his laptop was also thwarted by the failure of the modem, so the IWS [Internet Withdrawal Syndrome] continues.

Everyone is bored, but at least a cold front moved through dropping the temperature at night down to 60° so they can sleep.

No word on when the power might be back, but power has been restored to a third of the Centerpoint customers, leaving 1.5 million still in the dark.