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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Jim McMannis who wrote (172344)12/18/2008 1:48:25 PM
From: butschi2Read Replies (3) of 306849
 
Why should shareholders be screwed? What did they do?

They did invest in a defunct entity. Thats capitalism you make bad investment choices and loose your money. Same your bond holders. Your choice, your money, your losses or gains.

That should hold true for Madoff investors or AIG shareholders. Citi bagholders should pay their fair share although.

Its not the governments business to save investors from bad decissions.

They should have put AIG holding in default and distribute the ownership of the holding to the debt holders / CDS counterparties. The debt holders could then have decided if to sell the viable subsidiaries or keep them.
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