Wednesday, March 18, 2009

A Quote Without Comment

"Let’s not forget, A.I.G. was basically running an unregulated hedge fund inside a AAA-rated insurance company. And — like Madoff, who was selling phantom stocks — A.I.G. was selling, in effect, phantom insurance against the default of bundled subprime mortgages and other debt — insurance that A.I.G. had nowhere near enough capital to back up when bonds went bust. It was a hedge fund with no hedges. That’s why taxpayers have had to pay the insurance for A.I.G. — so its bank and government customers won’t tank and cause even more harm."

Thomas L. Friedman - New York Times - March 17, 2009

http://www.nytimes.com/2009/03/18/opinion/18friedman.html

If and when the NYT begins charging to visit their site, it will be money well spent.

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