AIG: The Looting Continues (Banana Republic Watch)

The Wall Street Journal reports, as was rumored on Friday, that AIG appears on the verge of approving a considerably enlarged and sweetened rescue package from the government.

We were less than happy with the idea when it first surfaced (see our rant “The Black Hole Gets Bigger: AIG Back for Yet Another Bailout“).Let us review the basics:

3 Responses to "AIG: The Looting Continues (Banana Republic Watch)"

  1. williambanzai7   November 10, 2008 at 7:55 am

    THE AIG BALANCE SHEETS(The Adams Family)WilliamBanzai7Their creepy and their kooky,Mysterious and spooky,Their all together flukey,The AIG Balance Sheets.Their office is a museumWhere people come to see ’emThey really are a screamThe AIG Balance Sheets.(Black Hole)(Opaque)(Indeterminate)So get your Bailout shawl onand some drums that you can roll onWe’re gonna pay a call onThe AIG Balance Sheets.

  2. Anonymous   November 10, 2008 at 8:19 pm

    Regarding the “Bailout”, the correct thing to do would be to declare derivatives null and void. AIG is heavily loaded with these betting slips. Derivatives and “Credit Default Swaps” are nothing but fancy terms used to obfuscate the reality that these are nothing but bets. We are the casino and our “guests” have figured out how to scam us and we’re letting them. Any other casino would escort these thieves out, which is what we should do by declaring them (derivatives) null and void. There is 1,000 TRILLION, or 1 QUADRILLION in derivatives outstanding – no one can or should attempt to begin to bail out that kind of money – it is just one big black financial hole. Check out

  3. Anonymous   November 11, 2008 at 1:40 am

    Great article, and one whose facts if correct needs to be brought before Congress. What is the FED doing exactly?One correction. Nick Leason was the scapegoat for bringing down Barings. His trades were OK’d by senior people in London who told him to continue and continued to send him more money to cover his losses and continue trading.The AIG fiasco needs to be reported more in the press, especially what Credit Default Swaps they hold and for whom these insurance instruments are intended to bail out. I believe that the bail out money should be used to protect AIG’s best assets – if they hold any. Bailing out questionable swaps is as good as throwing money down the toilet!