It's not AIG that's the problem, not really. The fall of Bear and Merrill has
proven that other firms are more than willing to pick up the fallen assets at
fire sale prices, which incidentally, is what our TARP program should have done
to begin with.
The real risk comes from the fact that AIG is a majority owned Chinese
corporation, and that the Treasury notes which are funding the bailout are
being purchased predominantly by Chinese interests. If we discontinue pouring
tax dollars into the fiscal black hole which is AIG, Chinese interests may
discontinue purchasing treasury bills. It's economic blackmail.
--~--~---------~--~----~------------~-------~--~----~
You received this message because you are subscribed to the Google Groups
""Minds Eye"" group.
To post to this group, send email to [email protected]
To unsubscribe from this group, send email to
[email protected]
For more options, visit this group at
http://groups.google.com/group/Minds-Eye?hl=en
-~----------~----~----~----~------~----~------~--~---
--- Begin Message ---
Here's a very interesting NYTimes editorial on AIG. It seems they've
been doing some heavy gambling with the complicity of Congress which
specifically enacted law to ensure they could get away with it.
Following the A.I.G. Money
http://www.nytimes.com/2009/03/15/opinion/15sun1.html?th&emc=th
But the big question still remains. If AIG is allowed to go belly up
-- i.e., no more bailout money -- just how much of the economy will
come crashing down with it, and could our fragile economic condition
survive such a crash? The transparency called for in the editorial
is certainly necessary if for no other reason than to answer that
specific question.
--~--~---------~--~----~------------~-------~--~----~
You received this message because you are subscribed to the Google Groups
""Minds Eye"" group.
To post to this group, send email to [email protected]
To unsubscribe from this group, send email to
[email protected]
For more options, visit this group at
http://groups.google.com/group/Minds-Eye?hl=en
-~----------~----~----~----~------~----~------~--~---
--- End Message ---
