( CNN ) -- The Federal Reserve Board announced an $ 85 billion plan Tuesday to bail out troubled insurance giant American International Group Inc. Suze Orman says it 's a good thing the federal government bailed out troubled national insurer AIG . The federal government decided to intervene after determining a failure of the company , whose financial dealings stretch around the world , could hurt the already delicate markets and the economy . Personal finance expert Suze Orman appeared on `` Larry King Live '' on Tuesday to discuss what the AIG bailout means to you and how safe is your money during this economic downturn . The following is an edited version of the interview : . Larry King : A few months ago , you said on this very show that you would be worried if there was another big government bailout . It 's now happening . Should the government be helping AIG ? Suze Orman : Well , in this particular case , I have to tell you they should . Bear Stearns , very different . Lehman , very different . AIG is an international giant that just does n't have ramifications here in the United States . It is worldwide . They 're like in 130 countries . They have 100,000 employees . Everybody has an AIG insurance policy . So in this particular case , my opinion , thank God , they bailed out AIG . Watch Orman discuss what AIG 's bailout means for consumers » . King : What about Barclays and Lehman ? Orman : They 're selling Neuberger Berman to Barclays , that 's fine . That will all work itself out . The major danger that we had here , which is why you saw the stock markets go up today , is that rumors were circulating that AIG was going to be saved . The big downfall would have been if AIG , in my opinion , had gone under . King : Sen. McCain is saying this involves fraud -- or let me use another word similar to fraud -- on Wall Street . Do you agree ? Orman : It starts way back when there was nobody overseeing and regulating . Nothing . It 's how many times have I said on this program , what were they all thinking ? Why were they lending money to people who should n't have been borrowing money ? Why were they packaging these things ? What about the rating agencies ? Why were n't the rating agencies rating everything the way they should have been and now they 're making matters worse ? So whether it 's fraud or not , was there deceit going on ? I do n't know if it was deceit as much as just total irresponsibility is what caused this . Watch Larry 's cure for US economic problems » . King : Is this a good time to get into the market ? Orman : No . It 's not a good time to get in with brand-new money . I would let these markets kind of wash themselves out . On the other hand , if you 're investing in a 401k every month with small amounts of money , that 's OK as long as you do n't need the money for 10 , 15 , 20 years . If you just got an inheritance and you have $ 50,000 , should you be putting it in the stock market now ? Are you kidding ? These are the markets that you just sit on the sidelines and wait on the sidelines and stay away from them until everything works out . iReport.com : Are you worried about the Wall Street crisis ? King : Oil settled down today to $ 91.15 a barrel . What does that mean ? Are gas prices going to go down ? Orman : Yes . Gas prices probably will go down , I hope , to essentially $ 3 a gallon . What you 're essentially seeing here is like a tax rebate for everybody . That 's a lot of people that will help them a lot . Lehman , AIG -- I get that 's all bad news , but the good news is for the main people that have to get by every single day . Your gas bills , in terms of what you put in your cars , are n't going to be as high . Your heating bills are n't going to be as high . To go from $ 150 a barrel down to $ 91 , that 's significant . King : The Federal Reserve decided to leave short-term interest rates unchanged today at 2 percent . Good or bad ? Orman : I personally think it was bad . Listen , the banks in the United States of America are in trouble . Anything we can do , in my opinion , to help the banking system so they can make a little bit more money , I think , would have been a good idea . If we had lowered interest rates , the Fed funds rate , the banks would have been making more money on the money that they lent out , which would be helping everybody in the long run . So I think they should have lowered , but they left the same . King : Could other major financial institutions go under ? Orman : Absolutely , they can . You would think that they could n't , but when you see dinosaurs -- Merrill Lynch , Lehman Brothers , AIG -- going down the drain , anything can happen . Nothing is beyond the imagination at this point in time .
Suze Orman : It 's good that federal government stepped in to save AIG . But it was a bad idea for the taxpayers and the economy as well. Orman says it 's not a good time to enter stock market . Orman warns other financial institutions could go under .