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Post by socal on Mar 1, 2009 10:10:58 GMT -6
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Post by NOTTHOR on Mar 1, 2009 19:44:51 GMT -6
AIG's default swap business is substantially the same as what AMBAC and MBIA did and for all intents and purposes, is not that much different than the theory behind Fannie and Freddie. I don't see why the Slimes has to refer to AIG's swap business as a scam, it's not, it's a risk-taking activity that they misjudged the risk on just like Fannie, Freddie and Congress did. The ratings agencies, AIG's auditors and the counterparties' auditors should have never let the swap fiction grow to the levels it did and the government should end its hard-on for AAA assets in setting capital reserve ratios.
Congress needs to pull the rug out from under AIG right now. I suspect they'll file for BK in the next few days. The operating company and United Guaranty need to get wiped and they need to move the strong insurance assets into a new operating company with a 2 or 3 year government guarantee (so it is AAA and can attract business) and tell the counterparties on CDS portfolio to sit on a tack and fight over the remaining non-insurance pieces.
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Post by thunderhawk on Mar 2, 2009 12:22:05 GMT -6
AIG must have some real deep tentacles to keep getting these bailout funds.
Scary shit indeed.
Oh, and these ratings agencies should be shut down. What a joke.
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Post by iammrhawkeyes on Mar 2, 2009 14:03:46 GMT -6
The article never stated which was the toughest group of clerics. Who won the big Christmas fight?
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Post by socal on Mar 2, 2009 15:08:21 GMT -6
The article never stated which was the toughest group of clerics. Who won the big Christmas fight? Not sure... but out of the two articles, I think that one made me the most depressed about the state of humanity. |
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Post by iammrhawkeyes on Mar 2, 2009 15:20:32 GMT -6
Yep. The Lord wouldeth be proud.
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Post by NOTTHOR on Mar 4, 2009 15:27:48 GMT -6
AIG must have some real deep tentacles to keep getting these bailout funds. Scary shit indeed. Oh, and these ratings agencies should be shut down. What a joke. I'm absolutely shocked that AIG is still kicking this week. Shut it down, boys. They will be back for more money. The M&A market is DEAD - there is no way they can sell assets right now, they need to just do a reorg and fuck the CDS counterparties. Goldman has said they have bought CDS's against all of their AIG exposure, everybody else has had months to take action. We couldn't fold it up in September given market conditions, but now people have had 6 months to concede it is a zombie and act accordingly. |
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Post by NOTTHOR on Mar 4, 2009 15:28:32 GMT -6
Oh yeah, and the ratings agency heads should have to report to Congress once a week for the rest of their lives and tell the world how stupid they were.
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