The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Hawkmoon who wrote (18042)	3/1/2009 11:24:42 PM
From: axial	1 Recommendation of 71474

You make a good argument. Remembering that we're all guessing (and will be until the truth finally comes out) I hold a slightly different view. That is, the insurers knew (just as we did in 2004) there was systemic risk in the range of their derivative practices. Not just swaps - the whole practice of ART in all its variants. How did they know? LTCM (more than any other preceding financial event) revealed the danger of a Black Swan event, derivative dominoes, and systemic risk. The web of economics and finance interlinks at many levels - were the IBs and Rating Agencies Prime Movers, or accessories? In my view, they were corrupted, yes - but AIG willingly and knowingly engaged in practices which required IBs and Rating Agencies to support their actions. Not to initiate them, to support them. They were accessories to AIG's actions. AIG (and many other global insurance players) were calamities waiting to happen - and worst of all there's still no evidence the practice of ART - by insurers, CBs and others - has been terminated. The practice hasn't been subjected to oversight, and it hasn't been stopped. So where's the gain in all this pain? JMO Jim

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