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Politics : Ask Michael Burke

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To: Freedom Fighter who wrote (117993)	3/15/2009 7:28:46 PM
From: Skeeter Bug	Read Replies (1) of 132070

>>So if our financial companies are really in the hole a few trillion (or even hundreds of billions) on derivatives, who the hell is making all that money?<< mostly the financial institutions. when AI was bailed out, the the same day $20 billion was transferred to Goldman Sachs. we aren't bailing out AIG in as much as we are bailing out all the companies AIG owes money to. >>I want to know who made the trillions that our financial institutions lost. That group and their friends on Wall St. are among the greatest evil of all time.<< the problem is that this insurance, which is what it really is, was unfunded. since AIG hadn't funded their insurance, they needed government money to pay out. if AIG went under, lots of CDSes would have triggered and more money would have been owed - and nobody had it. ini essence, these big banks would all owe each other billions and they would all rely on each other to pay them billions before they could pay out their billions... which none of them have, so the whole system blows up and they all become instantaneously insolvent. i think that risk is real. i also think that, in hindsight, that option will be better than the path we are going down now.

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