> RoMunn wrote:
> All well and good, but I would just as soon spin off the other divisions and
> bury the idiots in this division under their own mistakes.
>

The problem is that the division bet the value of the entire company
and then borrowed 30x more and bet that too.  They sold swaps -
bizarro insurance - on just about anything and those swaps came with
premiums.

Those premiums made the betters big heroes until - surprise! - AIG
actually had to pay out on the insurance.

Now the big problem is that AIG is also insuring LOTS of Americans,
including cash-value life insurance policies, not to mention
backstopping banks the world over.

In other words, if that division falls, AIG falls, if AIG falls,
America falls, and if America falls, the World falls.

Oops.

Guess we shouldn't have gutted regulation and anti-trust.

SUMMARY:

Remember trickle down economics?  Well, guess what's trickling down?

HINT: it ain't money, but it is kinda green ... and stinky.

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