The public outcry over the bonus money or the use of bailout money is just one example of why free markets are superior to government decision makers. It is difficult to succeed if others can force you to concentrate your efforts on things other than the ultimate goal. Yet later people (the same?) will make an objective assessment based on that ulitmate goal of profit and success. This leads to a lack of accountability and disorganization. Within the bounds of legality, AIG should determine how best to conduct business or wind down business as it may. Short of that, the government should run the company and do what is right for the economy.
I understand the instinct to preserve the principles of private ownership and decision-making. But that falls by the wayside if we the people through our government are going to second guess and attempt to undo things we don't like.
I propose an auction of ideas where people submit the best proposal to run AIG. Once we determine a winner, then leave them alone to do what we hired them to do.