Benzinga's Political Round Up

AIG AIG is in talks with the U.S. government to pare its stake in the insurer, as it looks to pay back the monies it received during the 2008 financial crisis. The CBO said extending the Bush tax cuts could be potentially fatal to the economy in the long run if they are extended permanently. The tax cut could be a boon in the short term, helping earners who earn more than $250,000 a year. This could potentially be a boost for retailers, like Saks SKS, as consumers spend more of their incomes. Home prices may take fall as the stimulus runs out, and could force the government to take additional measures to boost the lagging housing market. This would be a boost for home builders like Toll Bros. TOL and Lennar LEN.