Posted on 03/17/2009 10:44:34 AM PDT by wrrock
Why should politicians let something like the LAW get in the way of demagoging a company to take the spotlight of their own incompetency??
Can you give me a clue what “LLORT” is? I could not find in the web slang dictioary.
It seems to me if you are an insurance business, you have a keen understanding of the need to maintain reserves against losses. In this context, one could reserve by making bets on both sides, so to speak. It would take staggering incompetence to make all your bets on one side.
There is a point at which the assertion of incompetence begins to lose credibility against the smell of fraud. Beyond the one-sided bets are all sorts of accounting mechanisms that concealed real losses from investors for years. These accounting mechanisms are also part and parcel of the fraud. The slow deterioration of business conditions does not cause a stock to fall from $50/share to $0.33/share in less than a year. What causes drops like that is that people discover a truth that has been concealed: the financial condition of AIG was not as previously portrayed.
It the great mistake of most who labor toward a Free Republic to confuse stupidity with evil. Wall Street is rotten to the core, though the rot starts at the head: the Federal Reserve and its ongoing manipulation of the markets.
I should add that your assumption that AIG’s problems are rooted in bad mortages is not correct; the most significant problems came from “super senior multi-sector” CDSs. Indeed, on February 11, 2008, AIG said in an 8-K filing to the Securities and Exchange Commission that PriceWaterhouseCoopers, its independent auditor, has determined that the company had a “material weakness” in its internal controls over financial reporting relating to how it estimates the fair value of the super senior credit default swap portfolio of AIG Financial Products Corp. This group of CDSs, I think, brought about the rescue by September 2008.
MORTGAGES!
The bad mortgages, invented by Democrats and forced on lenders by Democrats CAUSED this problem.
It was only natural that the financial industry would try to protect itself from these risks, after the fact. However, the FACT is that our government FORCED this debt on society, by FORCING banks to make bad loans.
If we had a law that said adjustable rate mortgages or ARM’s could NOT be securitized -—
And, if we had a law that said that a positive equity position, in the underlying home, had to exist, AT THE TIME of securitization -—
That would stop the problem from ever happening again!
And the Credit Default Swaps would never be a problem.
He wuz for it, afore he was agin it.
Or wuz he agin it, afore he wuz for it?
One of those two.
No matter.
You know the libs.
Any old lie will do, it doesn’t even have to be a good lie.
“I did NOT have bonus with that company.”
;-)
Total meltdown, utter policcy failure, and this clown’s not even in office 3 month’s yet.
Let’s see, he gave permission for the bonuses, got a hundred grand in bonus himself, now he’s claiming he knew nothing about any bonuses.
Seargeant Shultz pulled this act off better than 0bama.
Hang on folks, this train wreck of an “Administration” is just beginning.
:-)
LLORT is backwards for TROLL ... Why we use that here, I dunno.. but I had to ask too...
Where are you UPSTATE.. I’m in “THE CITY OF EVIL” (Ithaca)
Duh..I should have figured this one out.
I'm currently living just outside Schenectady. Home of one of the most corrupt police departments in the nation.
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Just adding my BTTT.
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