AIG has been given special permission to access $20 billion of capital in its subsidiaries to free up liquidity… http://www.bloomberg.com/apps/news?pid=20601087&sid=a0uiEfsjhwDU&refer=home
This isn’t good - we are waiving capital requirements for insurance companies to fund up losses on subprime mortgage derivatives? The Governor thinks this is a good idea? So now we can extend losses from crappy derivatives to grieving widows, cancer patients, etc. (geez, this is good stuff for the next guy to run against Paterson).
JoeyDVivre Wrote: ------------------------------------------------------- > This isn’t good - we are waiving capital > requirements for insurance companies to fund up > losses on subprime mortgage derivatives? The > Governor thinks this is a good idea? So now we can > extend losses from crappy derivatives to grieving > widows, cancer patients, etc. (geez, this is good > stuff for the next guy to run against Paterson). Joey I agree with you. but what will happen if the goverment will let every company who is in trouble ending like LEH? I think there will be a huge domino effect in the market.
Good…let this Ponzi scheme come to an end…welcome the Great Depression.
strangedays Wrote: ------------------------------------------------------- > JoeyDVivre Wrote: > -------------------------------------------------- > ----- > > This isn’t good - we are waiving capital > > requirements for insurance companies to fund up > > losses on subprime mortgage derivatives? The > > Governor thinks this is a good idea? So now we > can > > extend losses from crappy derivatives to > grieving > > widows, cancer patients, etc. (geez, this is > good > > stuff for the next guy to run against > Paterson). > > > Joey I agree with you. but what will happen if the > goverment will let every company who is in trouble > ending like LEH? > I think there will be a huge domino effect in the > market. Yeah, that’s what they keep telling us. So if we have arranged our capital markets with the instability of a row of standing dominoes, how long are we going to try to prop it up?
JoeyDVivre Wrote: ------------------------------------------------------- > strangedays Wrote: > -------------------------------------------------- > ----- > > JoeyDVivre Wrote: > > > -------------------------------------------------- > > > ----- > > > This isn’t good - we are waiving capital > > > requirements for insurance companies to fund > up > > > losses on subprime mortgage derivatives? The > > > Governor thinks this is a good idea? So now > we > > can > > > extend losses from crappy derivatives to > > grieving > > > widows, cancer patients, etc. (geez, this is > > good > > > stuff for the next guy to run against > > Paterson). > > > > > > Joey I agree with you. but what will happen if > the > > goverment will let every company who is in > trouble > > ending like LEH? > > I think there will be a huge domino effect in > the > > market. > > Yeah, that’s what they keep telling us. So if we > have arranged our capital markets with the > instability of a row of standing dominoes, how > long are we going to try to prop it up? So…we can just sit and watch the market doing is course…
No, but trying to prop it up with insurance reserves is really dumb.