The Hollow Men of the AIG Debacle

At this very moment, throughout this great land of ours, ordinary people dwelling far away from the chaotic nonsense known as Wall Street are probably wondering how so much money could be wasted by so few people — people who, in fact, live in another country. And when the very same people appear to be rewarded for putting all of us in deep schmutz, the folks who pay all the invoices in the country have a right to ask why. And they do. How such self-described masters of the CDS universe went from Latin lovers to limp losers in one fell swoop is truly amazing.

It Tolls for Thee

It’s probably fair to say that, at this very moment, many of you are looking for an easy resolution, something that would enable you to move on, to accept the unacceptable. You are wondering how the devil we got here, how we could possibly “lose” so much so quickly. The obvious answer to this rhetorical question is that “we” have lost nothing, for one can only lose what one truly has in the first place.

Structured Finance: the Unknown Ideal

The last six months have brought American finance to the edge of the abyss. Mortals who, not so long ago, had seemingly achieved demiurge deal-making status are now experiencing their Götterdammerung. A single question now poses and imposes itself: what will the next six months reveal about our financial understanding? As always, only two possibilities […]