It's simple. A direct result of the deregulation favored by greenspan and others, is a cowboy culture on wall street where anything goes. These banks have too much leeway and their existence, while grotesque, is absolutely vital to the economy. They are too big to fail.
If AIG defaults western finance, as we know it, dies instantly. Then YOU AND I will be crying for help and it will not be sweet or good times.
AIG became a doomsday device by insuring every type of asset backed security and loan as they could find. This allowed banks and pensions to appear to have no risk on their books no matter how much debt they have because each bet was insured.
But AIG was never able to pay up if the market went south. Now that insurance is gone, but the debt remains.
so if the business of AIG issuing big risk contracts is grinding to a halt, is there another competitor stepping in? if not, i see the possibility of further economic decline as taking on such "big risk" projects may become too unfavorable without proper insurance. any thoughts?
Thank God there are people in Congress asking intelligent questions and opposing the spending bill. It's incredible that these bills are rushed before people can even read them.
It's simple. A direct result of the deregulation favored by greenspan and others, is a cowboy culture on wall street where anything goes. These banks have too much leeway and their existence, while grotesque, is absolutely vital to the economy. They are too big to fail.
avzeolla 1 week ago
All of Washington and Wallstreet, just liars and thieves.
Why would anyone trust anything, any of them have to say?
If you had to rely on it, you counldn't ask any of them the time of day.
DD826 2 years ago
Nice blanket statement! Is it warm and cozy under there?
Einstiensblackid 2 years ago
When the shit starts to hit the fan, these "elites" will be the first to start crying for help.
And it will be sweet.
Just good times.
DD826 2 years ago
If AIG defaults western finance, as we know it, dies instantly. Then YOU AND I will be crying for help and it will not be sweet or good times.
AIG became a doomsday device by insuring every type of asset backed security and loan as they could find. This allowed banks and pensions to appear to have no risk on their books no matter how much debt they have because each bet was insured.
But AIG was never able to pay up if the market went south. Now that insurance is gone, but the debt remains.
Einstiensblackid 2 years ago
so if the business of AIG issuing big risk contracts is grinding to a halt, is there another competitor stepping in? if not, i see the possibility of further economic decline as taking on such "big risk" projects may become too unfavorable without proper insurance. any thoughts?
mdbarnes21 2 years ago
Those are very good questions you are asking. Keep up the good work.
jamacianman83 2 years ago
Thank God there are people in Congress asking intelligent questions and opposing the spending bill. It's incredible that these bills are rushed before people can even read them.
zydecat 3 years ago
Dear Mr. John Campbell. Please co-sponsor H.R. 1207, the "Federal Reserve Transparency Act of 2009". AUDIT THE FED!
MichaelDanePetersen 3 years ago 2
I second this motion. H.R. 1207 needs to pass.
1968GB 3 years ago