March 15, 2009 AIG (America inherited Greed)
I will assume you have recently heard about AIG in the news. Should they be hated? Are they crooks? Do they now have your kids future earnings? Is this country gullible? Did we trust our neighbors in New York? I guess so…..
AIG is an insurance company. They write insurance for lots of stuff. Good insurance for many years. But then they started writing insurance policies on vapor (CDO, Lehmann Bros risk, Real Estate leverage.) Bad idea even IF AIG has the money for claims. But, guess what? They DIDNT HAVE THE MONEY and the claims started to flood in! Tip of iceberg claims in the billions of dollars from sub-prime mortgages!!! Your kids future taxes had to be used FAST (see headline on web page of picture below) or we would have seen an iceberg that would have paralyzed the world. No SH*T!
You heard of the $700B TARP? “Where did the first $350,000,000,000 go????” On a big quarantine friend, a $350B quarantine . Think of it of it this way. Wall Street cheated the principles of investing (unsustainable leverage on CDOs) and took out risk insurance from AIG. AIG then cheated because not only did they cover the false shyte, they never had the money to pay the claims. Needlesstosay, someone had to pay. Not a choice. Hence welcome to the TARP.
If the GOV did not pay those claims with TARP (future tax) the AIG insurance policies would have defaulted causing “systemic risk.” Some say we are lucky because we are ONLY feeling the effects of about 10% of what could have happened. Crazy I know!
Things to think about:
- The picture was taken by some chap on Flickr. He claims he got the flyer (holding) in the mail from AIG the same day our kids were taxed $85,000,000,000 just for AIG!
- AIG was a great company just a few years ago
- If TARP was not used, the greed of Wall Street would have dwarfed The Great Depression
- Only a fraction of AIG employees (350) brought these $ TRILLIONS of DOLLARS $ of losses
- If you have a mortgage, AIG is probably some how connected to yours
- This mess would have created the “so called” world economy to stop, not crash, stop
- AIG insurance fraud makes the Tyco, WorldCom, Madoffs, and Enrons of the world look like Saints
Remember, this is the greatest country in the world for so many reasons, and whatever you think about our government & economic situation, get some perspective by clicking here.