Comments on: AIG and LTCM http://www.noquarterusa.net/blog/17955/not-time-sensitive-aig-and-ltcm/ Fri, 25 May 2012 11:35:00 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: gire http://www.noquarterusa.net/blog/17955/not-time-sensitive-aig-and-ltcm/#comment-1161646 gire Fri, 20 Mar 2009 18:32:31 +0000 http://www.noquarterusa.net/blog/?p=17955#comment-1161646 LTCM was an "original sin" it's bailout should have exposed how dangerously leveraged an interconnected the banking system is. THe LTCM bailout taught the markets that they did not have to worry about counterparty risk on lending to traders/bankers because the government would step in and bailout creditors. AIG is LTCM on steroids. Irresponsible firms like Goldman, et al. purchased CDS insurance contracts from AIG that were not properly underwritten. Once again, there is no penalty for stupid lending. Can you guess why there is 30:1 leverage in the industry? LTCM was an “original sin” it’s bailout should have exposed how dangerously leveraged an interconnected the banking system is. THe LTCM bailout taught the markets that they did not have to worry about counterparty risk on lending to traders/bankers because the government would step in and bailout creditors. AIG is LTCM on steroids. Irresponsible firms like Goldman, et al. purchased CDS insurance contracts from AIG that were not properly underwritten. Once again, there is no penalty for stupid lending. Can you guess why there is 30:1 leverage in the industry?

]]> By: WhatNow http://www.noquarterusa.net/blog/17955/not-time-sensitive-aig-and-ltcm/#comment-1161344 WhatNow Fri, 20 Mar 2009 05:47:18 +0000 http://www.noquarterusa.net/blog/?p=17955#comment-1161344 AIG created the mess they're in and should exist gracefully or fix their own mess. Shame on them. The Obama administration needs to clean it's own house before they tell other corporations what to do. Geithner knew what was going on with AIG back in November and so did Obama, Pelosi, Frank, Reid, Benake,Dodd and the Bush Administration. Yes, TARP was a joint effort back in 2008. Wouldn't it be a nice CHANGE if the Obama administration forgo the payback for campaign funds and concentrate on the people of America? AIG created the mess they’re in and should exist gracefully or fix their own mess. Shame on them.

The Obama administration needs to clean it’s own house before they tell other corporations what to do. Geithner knew what was going on with AIG back in November and so did Obama, Pelosi, Frank, Reid, Benake,Dodd and the Bush Administration. Yes, TARP was a joint effort back in 2008.

Wouldn’t it be a nice CHANGE if the Obama administration forgo the payback for campaign funds and concentrate on the people of America?

]]> By: Concerned Citizen http://www.noquarterusa.net/blog/17955/not-time-sensitive-aig-and-ltcm/#comment-1161333 Concerned Citizen Fri, 20 Mar 2009 05:16:22 +0000 http://www.noquarterusa.net/blog/?p=17955#comment-1161333 The AIG bonuses everyone is in a lather about are less than $200 million. We've sunk $170 BILLION down this rat hole, paying off sovereign wealth funds, hedge funds and foreign banks -- the counter parties to these derivatives. There are another $1.2 TRILLION of toxic derivatives left to go at AIG. Why should taxpayers be on the hook for this stupidity? Is it really fair to sign our kids up to a lifetime of slavery to pay this off? Let them all go bankrupt! Protect depositors at banks and let the rest fail. The AIG bonuses everyone is in a lather about are less than $200 million. We’ve sunk $170 BILLION down this rat hole, paying off sovereign wealth funds, hedge funds and foreign banks — the counter parties to these derivatives.

There are another $1.2 TRILLION of toxic derivatives left to go at AIG.

Why should taxpayers be on the hook for this stupidity?

Is it really fair to sign our kids up to a lifetime of slavery to pay this off?

Let them all go bankrupt! Protect depositors at banks and let the rest fail.

]]> By: bayareavoter http://www.noquarterusa.net/blog/17955/not-time-sensitive-aig-and-ltcm/#comment-1161320 bayareavoter Fri, 20 Mar 2009 04:57:06 +0000 http://www.noquarterusa.net/blog/?p=17955#comment-1161320 The outrage about the AIG bonuses and Congress' taxation of them are just distractions really. As you describe what happened in the '80s and compare it to today it seems we should look behind the curtain! Geitner had since last fall and especially since November to pull a plan and team together. Is he too entrenched in Wall St or does he just need more people working for/with him? The outrage about the AIG bonuses and Congress’ taxation of them are just distractions really.

As you describe what happened in the ’80s and compare it to today it seems we should look behind the curtain!

Geitner had since last fall and especially since November to pull a plan and team together. Is he too entrenched in Wall St or does he just need more people working for/with him?

]]> By: TeakwoodKite http://www.noquarterusa.net/blog/17955/not-time-sensitive-aig-and-ltcm/#comment-1161314 TeakwoodKite Fri, 20 Mar 2009 04:36:42 +0000 http://www.noquarterusa.net/blog/?p=17955#comment-1161314 I think the verification is given from the overwhelming sense of Deja Vu. It's like an old western where a couple of cowboys see buzzards circling in the distance. Dare they investigate? I think the verification is given from the overwhelming sense of Deja Vu.

It’s like an old western where a couple of cowboys see buzzards circling in the distance. Dare they investigate?

]]> By: WMCB http://www.noquarterusa.net/blog/17955/not-time-sensitive-aig-and-ltcm/#comment-1161311 WMCB Fri, 20 Mar 2009 04:28:00 +0000 http://www.noquarterusa.net/blog/?p=17955#comment-1161311 Wow. Excellent take that I had not thought about. It would explain a lot. Wow. Excellent take that I had not thought about. It would explain a lot.

]]>