Originally Posted by AL P
I totally agree with everything you said.
However, banks all over the world hold credit swaps with AIG on portfolios of bad mortgages. It was a completely unregulated industry that literally had guys doing deals via AOL instant messenger. As long as AIG can hold up their end of the deal on those swaps the banks never have to write down the value of those mortgage portfolios. That's because they are "insured" against loss. The minute AIG goes down all those banks are going to have to take that loss and instantly become insolvent. That may, in turn, result in other banks going insolvent in a chain reaction. Once a bank is insolvent the FDIC takes them over. Either way it is taxpayer money.
And nobody knows how deep the rabbit hole is, AIG may need billions more next month. There are trillions of dollars of these swap contracts out there. Some people estimate a dollar value higher than the GDP of the entire world. The entire thing could still collapse too. Saying "just let it collapse" is a gamble, nothing may happen or we could be eating out of fucking trashcans. Nobody really knows.
With as much money as the govt has handed them on a silver platter, and the unkown of how much more they will need to survive, shouldn't the govt just go ahead and tell them to get fucked and deal with the consequences?
I mean, after all... This does make $340 Billion to AIG alone, right? There was the first $150, then $40, and now another $150. I mean really, when is enough enough? As a taxpayer, I fucking DEMAND every last head of upper management and every last fucking executive. Medieval, public fucking hanging style.
Too bad I'm a nobody, and it will never happen. Instead, they'll spend millions more on useless fucking vacations and retreats, while the company is run further in to the fucking ground, and everyone walks off scott fucking free.
This pisses me off to no end. The amount of irresponsibility that the Execs showed by the company getting this bad, and the amount of the same the Govt has shown by giving them billions of dollars is sickening.