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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (427163)10/18/2008 11:43:07 AM
From: TigerPaw3 Recommendations  Read Replies (1) | Respond to of 1572506
 
It wasn't "fake insurance",

CDS was fake insurance, because it was not backed up by anything. The people buying such insurance had every right to expect that there would be resources behind it if they had to make a claim. Insurance regulations would have insisted on capital reserves. The Bush Administration didn't believe in regulations and AIG didn't believe in putting any money aside to cover claims.

TP