Tuesday, March 03, 2009

It's Called Fraud

Let me see if I have this straight. AIG insured a bunch collateralized debt (subprime mortgages, etc.) and for doing that they made a lot of money, a big pile of it. When it turns out that the value of all these CDO's was crap and AIG was required to come up with the money, they didn't have it.
AIG was/is an insurance company that guaranteed a bunch of stuff but they never really had the money to cover their promises.
That's fraud in my book and everyone at AIG that took money for underwriting all this worthless stuff when they surely knew better needs to be made very poor and spend some time in the hoosegow. They sure as hell don't deserve any of the taxpayer's money.
This privatizing the wealth but socializing the risk thing is way, way out of hand.

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