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  • What Obama Needs to Know about Tim Geithner, the AIG Fiasco and Citigroup [View article]
    Why are CDSs are not rolled into an exchange yet? Would this not be a prudent methodology to legitimize the interest and save the taxpayer from bailing out speculators as we speak?


    On Nov 26 12:50 PM BerkeleyBob wrote:

    > Complex issues here, some of the comments are informative, some not.
    > Two central points emerge: 1) The damage to US reputation in the
    > world financial market is incalculable and grave; 2) AIG appears
    > to have been at the fulcrum of making book on leveraged CDO's and
    > credit default swaps which were purchased by entities having no
    > insurable or legitimate hedge interest in the underlying assets.
    > It was not insurance, not regulated, and required apparently no reserve.
    > Pure profit for AIG until the Ponzi scheme unraveled. Hank Greenberg
    > is as unrepentant as Dennis Kowzlowski or any of the Enron gang.
    Nov 26 13:16 pm |Rating: 0 0 |Link to Comment
  • What Obama Needs to Know about Tim Geithner, the AIG Fiasco and Citigroup [View article]
    Hypothetically, I borrow $1K to buy $1M in fire insurance on my house that would actually cost $100K to replace. My house burns down and the insurer can't make good because too many houses burned down in such a short period of time with such exorbitant coverage . Should the government fund the insurer with taxpayers money to make good hoping that not many more houses will burn down?
    Nov 26 12:45 pm |Rating: +1 0 |Link to Comment
  • What Obama Needs to Know about Tim Geithner, the AIG Fiasco and Citigroup [View article]
    Why fund a leveraged wager of CDSs with taxpayers money?


    On Nov 26 10:04 AM Steve Pluvia wrote:

    > You, lost me early in this overly-long soap-box stint.
    >
    > Are you *seriously* suggesting the U.S. let AIG blow-up?
    >
    > So let me see if I get your point...
    >
    > Let AIG fail; All foreign held debt insured by AIG blows up...
    >
    > -- US treasury and corporate debt immediately has zero credibility;
    >
    > -- US corporations and have zero borrowing power for short term trade
    > and expansion.
    > -- Trade grinds to a halt as foreign partners no longer honor purchase
    > orders from US corporations.
    > -- Run on all banks;
    > -- The dollar gets crushed; and,
    > -- The US have very little ability to jump start the US economy with
    > spending
    >
    > Oy freakin vey. Your idea is ridiculous. Clearly you don't understand
    > the implications of what you propose.
    >
    Nov 26 12:10 pm |Rating: +2 0 |Link to Comment
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