AIG now worths about $1 bil, and we put in $180 bil

[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.

The problem I have with this is that GS claimed they hedged their losses on bad MBS meaning they got paid twice, once from the hedge and once more from the taxpayer. It’s all wrong and so are giving bonuses to people running an insolvent company that they drove to insolvency.

[davelj]

[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.
[/quote]

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.

[davelj]

[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.
[/quote]

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.

[davelj]

[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.
[/quote]

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.

[davelj]

[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.
[/quote]

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.

[davelj]

[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.
[/quote]

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.

[davelj]

[quote=BGinRB]Don’t mix Jane Q. and GS.
GS did not purchase insurance from AIG.[/quote]

Sure they did. CDS are nothing more than insurance policies by another name. That’s why most folks are up in arms that they have existed outside the insurance regulatory framework for so long.

[davelj]

[quote=BGinRB]Don’t mix Jane Q. and GS.
GS did not purchase insurance from AIG.[/quote]

Sure they did. CDS are nothing more than insurance policies by another name. That’s why most folks are up in arms that they have existed outside the insurance regulatory framework for so long.

[davelj]

[quote=BGinRB]Don’t mix Jane Q. and GS.
GS did not purchase insurance from AIG.[/quote]

Sure they did. CDS are nothing more than insurance policies by another name. That’s why most folks are up in arms that they have existed outside the insurance regulatory framework for so long.

[davelj]

[quote=BGinRB]Don’t mix Jane Q. and GS.
GS did not purchase insurance from AIG.[/quote]

Sure they did. CDS are nothing more than insurance policies by another name. That’s why most folks are up in arms that they have existed outside the insurance regulatory framework for so long.

[davelj]

[quote=BGinRB]Don’t mix Jane Q. and GS.
GS did not purchase insurance from AIG.[/quote]

Sure they did. CDS are nothing more than insurance policies by another name. That’s why most folks are up in arms that they have existed outside the insurance regulatory framework for so long.

[capeman]

I don’t see how you got that from my post. I said it is the government’s responsibility to cover depositors. That would be cash depositors of banks and not customers of companies like AIG unless I missed something and they became a bank holding company like GS.

If the government would have never bailed out AIG we would be much further through the imminent depression and deflationary credit collapse by now. The major pain has not been taken yet and when .gov can no longer prop up the system we will see much worse than we’ve seen so far in this declining economy.

[capeman]

I don’t see how you got that from my post. I said it is the government’s responsibility to cover depositors. That would be cash depositors of banks and not customers of companies like AIG unless I missed something and they became a bank holding company like GS.

If the government would have never bailed out AIG we would be much further through the imminent depression and deflationary credit collapse by now. The major pain has not been taken yet and when .gov can no longer prop up the system we will see much worse than we’ve seen so far in this declining economy.

[capeman]

I don’t see how you got that from my post. I said it is the government’s responsibility to cover depositors. That would be cash depositors of banks and not customers of companies like AIG unless I missed something and they became a bank holding company like GS.

If the government would have never bailed out AIG we would be much further through the imminent depression and deflationary credit collapse by now. The major pain has not been taken yet and when .gov can no longer prop up the system we will see much worse than we’ve seen so far in this declining economy.

[capeman]

I don’t see how you got that from my post. I said it is the government’s responsibility to cover depositors. That would be cash depositors of banks and not customers of companies like AIG unless I missed something and they became a bank holding company like GS.

If the government would have never bailed out AIG we would be much further through the imminent depression and deflationary credit collapse by now. The major pain has not been taken yet and when .gov can no longer prop up the system we will see much worse than we’ve seen so far in this declining economy.

[Author]

Posts