What should have been done?
Simple: When we nationalized AIG, we should have immediately spun out the good, solvent life insurance company. It is a highly viable standalone entity.
The hedge fund should have been wound down in an orderly fashion. Match up the offsetting trades, the rest go to zero. End of story.
You as a credit default swap gamblor have no reasonable expectation that anyone other than the incompetent firm you placed your bet with is going to make good. You had as your xounter party another hedge fund. Tahatwas the risk YOU — not the yaxpayer — assumed. That is was under the roof of a legitimate insurance company is irrelevant.
Right now, we are into this clusterfuck for $166 billion — every last penny of which is a needless waste.
Taxpayers should not be bailing out hedge fund trades. This insanity must cease immediately .
Monday, March 09, 2009
Somebody please FIRE TIMMEH, he's not going to fix this, he's going to keep shoveling our money into the fire until his friends get out made whole by the rest of us: