So is this a taste of how our newly forming socialist country will react to businesses whos spends invested money in ways that the US Government does not approve?

The arguement that it is taxpayers money is weak. If you give them the money in a capitalist society you give them the ability to spend it in any way they see fit, it's called an investment. We've invested in AIG. Now we have to trust the executives to run the company as required to make the investment pay off.

If it's not an investment then what is it? Did the US Government just purchase AIG outright? Okay so if that's the case, the government now 'owns' AIG and it can tell the employees how to spend their money. Isn't that socialism