Dweezil

AIG Bailout: Over to Congress

Knowitall, AIG has written huge ammounts of CDS's from what I (and everyone else) have read. They were bets AIG was willing to make and if they didn't adequately price the risk or sold more than they could handle that's not my problem.

I look at it the same as writing unsecured puts, no matter how remote the chance there's still the possibility you end up with stock you don't want at a price higher than you can afford. Lesson is don't write something you can't back up. If AIG can't back up the CDS's that were written then they should be left on there own to sort it out.

If other companies suffer from contracts they wrote and get exercised because of it, let them all fall apart. There's nothing backstopping the individual if they make bad calls, what makes a multi-national any different?

America Buys AIG

I want a bailout for making bad bets in the market, now!

The market's only been telling people for over a year that there were problems in the credit market.

Lehman can fail, but AIG somehow can't because of potential problems that may result? Where is the actual proof of the financial armageddon that will result from letting people make bad decisions and having to live with it?

Let these companies fail, show them that there are consequences to there actions. If it throws the system in turmoil for a while, at lest it ends the perception that no matter how bad you screw up the government will come to you rescue.

Seems questionable that there wasn't funding available to Lehman Brothers but somehow it's there for AIG. Why should one company be spared and the other left to die when they both made the same bad bets on the same instruments.