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Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “AIG Bailout”

1. CNK Says:
   March 19th, 2009 at 10:58 am

   I believe the Bailout should be done in the following way;

   1. If the AIG Counter Party was actually Hedging a position then AIG Bailout money would support that instrument by the Counter Party passing over the instruments to AIG.
   2. If AIG Counter party was actually just speculating (NO hedging of a position) then he would just receive the amount of premium paid to AIG. Typically AIG charged 1% rate on line so that would be the payment to the Counter Party.

   If AIG had gone into Bankruptcy Court there is a good chance that those Counter Party speculators would have received nothing.

2. Moss Says:
   March 22nd, 2009 at 12:40 pm

   I think all speculative CDS contracts should be handled as suggested above.
   This is the uncertainty that is spooking everybody not what Treasury or the Fed may of may not do.