najdorf

AIG: How It Spent Your Tax Money

You guys are looking the wrong way by blaming short sellers and CDS buyers. Blame the CDS sellers and the management of companies that failed. If Lehman was sold off unjustly, they would have been able to demonstrate convincingly that their stock was undervalued - disclose the portfolio, find some buyers for good quality assets to raise capital, and show us the cash flows that justify their valuations for various securities they hold. If AIG got taken for a ride selling cheap CDS, maybe they should have done better DD on their CDS pricing and risk-management. You can't name one healthy company in history that was done in by false rumors or market manipulation. If AIG sold insurance, and AIG has money available to pay it (thanks to the gov loan, which is arguable), they must pay. They entered the transaction freely and profited at the front end. Time to pay the piper.