tag:blogger.com,1999:blog-11027528911364475.post9106927544273478163..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: The AIG Public Relations Fiasco Continues: Bonuses and Backdoor BailoutsJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-11027528911364475.post-29480074790002360682009-03-17T11:46:00.000-07:002009-03-17T11:46:00.000-07:00Lehman was just another i-bank (no. 3?).i´m sure t...Lehman was just another i-bank (no. 3?).<BR/>i´m sure they wouldn´t have goldman let fail.<BR/><BR/>and then there´s the elevated role AIG plays in the CDS space.<BR/><BR/>the bigger you´re involved this area the higher the chance you will get bailed out (see even smaller Bear Sterns).<BR/><BR/>a failure to make good on contracts would automatically send shockwaves through the banking sector because many european banks were only able to lever themselves up by buying credit protection from a AAA insurance (AIG). <BR/>take away the protection and their capital ratios would plummet overnight cuasing all kinds of turmoil.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-16791460618122266772009-03-17T06:23:00.000-07:002009-03-17T06:23:00.000-07:00Easy, Paulson had beef with Dick Fuld. Moral Hazar...Easy, Paulson had beef with Dick Fuld. Moral Hazard was just an excuse.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-29167713542071517442009-03-16T23:46:00.000-07:002009-03-16T23:46:00.000-07:00"so if you want to remain the center of the financ..."so if you want to remain the center of the financial world you make sure that your biggest insurer makes good on its obligations."<BR/><BR/>Then why let Lehman go literally the same week?Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-78002293359362326042009-03-16T23:32:00.000-07:002009-03-16T23:32:00.000-07:00the bailout of AIG was a bailout of the US credibi...the bailout of AIG was a bailout of the US credibility.<BR/><BR/>AIG was able to to close these contracts under US oversight.<BR/><BR/>unfortunately besides the FIREs, tech and defense equipment there´s not much left for the US to lead the world.<BR/><BR/>so if you want to remain the center of the financial world you make sure that your biggest insurer makes good on its obligations.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-32737120339836950462009-03-16T11:39:00.000-07:002009-03-16T11:39:00.000-07:00In an environment where unemployment is rising to ...In an environment where unemployment is rising to record levels, I don't think many employees would quit simply because they hadn't received their bonuses.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-222531732518476842009-03-16T06:10:00.000-07:002009-03-16T06:10:00.000-07:004 words... where would they go?4 words... where would they go?Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-78352548839600820732009-03-16T06:02:00.000-07:002009-03-16T06:02:00.000-07:00I don't understand why people blame AIG. Instead o...I don't understand why people blame AIG. Instead of letting it fail and getting rid of all the executives, bonuses, and most employees, the government saved AIG and now it is a continuing business. Paying bonuses is what businesses have to do to retain their workers.LZhttps://www.blogger.com/profile/05082516166181943903noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-31692124348022264932009-03-16T05:41:00.000-07:002009-03-16T05:41:00.000-07:00AIG is a demonstration of game strategy during tra...AIG is a demonstration of game strategy during tragedy of the commons- when everything goes down the toilet, grab what you can.<BR/><BR/>They make me want to storm the Bastille and start a Reign of Terror- it's no different than the French Aristocracy. <BR/><BR/>I'm sure all of the "too big to fail" institutions will be able to extract much more wealth off the backs of the people in the near future, and keep doing so as long as they don't foment a violent uprising.Anonymoushttps://www.blogger.com/profile/04490179400711329488noreply@blogger.com