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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (99595)	11/10/2008 8:39:14 PM
From: Hawkmoon	Respond to of 110194

And look at how much of AIG's exposure was due to the over-leveraging of European banks. I think the history books will likely show that the Government's bailout of AIG was more of a favor to Europe's banking system than our own, not that our banks weren't responsible as well. But they were buying our MBS's at high leverage and insuring them will CDS' from AIG and others. Again, it all kind of goes back to this decade of real-estate excesses, loaning money to unqualified borrowers and 10% of the Mexican population living here illegally, and "financial innovation" with unregulated CDS contracts. Hawk