Quote:
Originally Posted by aceventura3
I don't remember who said it but AIG was an insurance firm acting like a hedge fund. And other than the superficial "because I said so" logic no one has spelled out why AIG was too big for bankruptcy.
If probing into that is ridiculous, I am guilty. I need someone to explain why AIG was too big for bankruptcy. Seems to me, that people like you actually could have used a few people like me in Washington before committing billions into a failed corporation.
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Do you know who is insured by AIG? What they insure against?
They underwrite insurance, do "corporate insurance," and actually insure financial instruments used by other banks and funds. If they go broke, not only will everyone who's invested in AIG lose money, but insurance companies, banks and funds will go under as well. If they go under, not only will the "zombie" banks lose money, but also many other healthy banks.
That would make the current situation seem like nothing.