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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (85353)	9/16/2008 11:18:36 PM
From: Claude Cormier	Respond to of 116555

- "By what authority can the Fed lend to insurance companies?" Just the beginning. A new way of monetary inflation!

To: mishedlo who wrote (85353)	9/17/2008 3:08:04 AM
From: NOW	1 Recommendation Respond to of 116555

oh come now: be honest: they can do whatever they F$%ing well please and you know it

To: mishedlo who wrote (85353)	9/17/2008 10:37:46 AM
From: AreWeThereYet	Respond to of 116555

I guess because the government has no choice. Many people had asked what is considered "too big to fail". I guess AIG is one of answer. It is a mistake to allow insurance companies to involves in risky derivatives trading in the beginning but if AIG goes belly-up. The States will need to take over the insurance polices. The CDS market will collapsed, and it will affect almost everyone including many miners. The mess will cost a lot more than 85 billions to fix.