[quote=capeman]GS purchased Credit Default Swaps as insurance policies for their MBS that went bad. GS got paid out by the taxpayer as did other banks and sovereign funds and that is money we will not be getting back as they are insurance plan payouts that only go one way. It is not our responsibility as taxpayers to be paying out on securities insurance plans. It is our responsibility to protect depositors for their hard earned cash they place with financial institutions that are supposed to be regulated and closely observed for capital requirements by .gov.
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So, let me get this straight. It is “not our responsibility as taxpayers to be paying out on securities insurance plans,” but it IS our responsibility to pay out on individual and corporate insurance plans that are not securities related? So, the government should pick and choose which AIG customers get paid out on their insurance claims? I just want to make sure I’m understanding what you’re suggesting.
