paulsjj

How AIG FP Brought Down the World

Wall Street built a machine.
Alan G. turned the crank.
AIG & GS gamed the mart,
and blew the whole d... thing apart.

The Virtue of the Republic

Washington: "The House of Games"...The bail-out in all of its forms: "The Big Knockover" (Ref. Dashiel Hammet).

How Much of the Banks' Earnings Are Real?

Banks have a license to make money through the fractional reserve system. The only reason they fail is for over-reaching (excess leverage), assets that aren't assets, billions of $ off the balance sheet, and fraud.

The Common Refrain, To Our Detriment

"To Big to Fail" and "Boom, Bust, Bailout". If your big and you know that your going to get bailed out you can leverage your investors and customers assets to the hilt: 30-60/1, walk away with a fortune, and leave the mess to ignorant politicians who will make it worse.

AIG Bonuses Are Just the Tip of the Iceberg

Most of the stimulus package can be considered as bonuses to the dem's special interest groups. As usual, the wrong questions get asked. Where did AIG's 180 billion bail out go? Who got it?

This Is Not "the Big One"

How does billions of dollars of mortages written against property become trillions of dollars of debt upstream to the big investment banks. No body is talking about t he leverage involved here from the base mortage to AIG's $trillions in liabilities that they cannot cover. I say let them fold. Soon the market on the ground will buy up the foreclosed properties and the paper will clear at various levels of loss. The leverage involved goes up in smoke.