Tuesday, Mar 10, 2009
Playing chicken - is AIG the centre of the CDS debt insurance storm?
Bloomberg: AIG Told U.S. Failure May Cripple Banks, Money Funds
"AIG appealed for its fourth U.S. rescue by telling regulators the company’s collapse could cripple money-market funds, force European banks to raise capital, cause competing life insurers to fail and wipe out the taxpayers’ stake in the firm...The Fed is “asking for an open-ended check” and is “not going to get” it, Senator Robert Menendez, a New Jersey Democrat, said last week in Congressional hearings." [It seems to me that the housing bubble financed by the larger credit bubble happened because of a belief that potential losses were insured by the CDS market. If that is the case then it looks like AIG really is at the heart of the storm. I think is too complex to solve so should be allowed to fall. However, politicians used to undeliverable promises will not change course now.]
4 Comments
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1. japanese uncle said...
Quite like the monster in the film Alien, AIG is saying 'If you shoot me, I will explode splattering tons of incredibly toxid acid blood', killing all of you. So don't shoot me, for your own sake.
2. jackas said...
Someone needs to lance this oversized puss-filled boil quickly.
3. crunchy said...
"Exterterroristrials"
4. Jon said...
Sounds like unorthodox economic terrorism :}