“AIG is so inter-connected with other companies, it would bring down other firms.”
I know that, but I don’t care. Why are we propping up companies that otherwise wouldn’t exist? Maybe we should go out and artificially create a few more companies and prop them up, too?
What we seem to be saying here is that the dollar has far less value than the market says it should. I mean, when we say, “People will lose lots of money”, I have to ask, “What money?” If the money is already there then there is no propping up to do. Obviously, the markets have been playing with funny money that does not exist and the Fed is all part of it. Welcome to fiat currency where money has no value except for the amount of hype behind it.
What I believe the Fed is trying to do is unravel this thing in as graceful and orderly manner as possible. AIG will probably cease to exist in the not too distant future.
These people weren’t buying and selling Buicks, they were dealing in hideously complex financial instruments on a global scale.
What I believe the Fed is trying to do is unravel this thing in as graceful and orderly manner as possible. AIG will probably cease to exist in the not too distant future.
These people weren’t buying and selling Buicks, they were dealing in hideously complex financial instruments on a global scale.