Comment #4

konane — Thu, 25 Feb 2010 02:50:07 GMT

Thanks Maddog! They're like 80's greed on steroids, and that kind of greed isn't well received in the economic climate their greed has created.

Comment #3

MADDOG10 — Thu, 25 Feb 2010 01:32:33 GMT

Thats just about what this cotten-cluster is doing to this country now. A couple of more degree's to the right and we'll be in a civil war......

Comment #2

konane — Wed, 24 Feb 2010 22:53:45 GMT

Thanks Rick! Very interesting!

Comment #1

Rick G — Wed, 24 Feb 2010 22:21:30 GMT

Odious Debt In international law, odious debt is a legal theory which holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, such as wars of aggression, should not be enforceable. Such debts are thus considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion. The d... [ More ]

Original Blog Entry: Remember the AIG bailout, well there seems to be more.

konane — Wed, 24 Feb 2010 19:57:37 GMT

Greece is in severe financial trouble and if this information is correct our government has placed us on the hook to bail them out, along with other EU countries.

The entire article from Market Ticker deals with some metaphors which should not be taken out of context ..... therefore if you're a skim scanner with limited attention span don't bother. Otherwise it's a very good read for fiscal conservatives worried about the economic future of this nation.

Hmmmm .... while we're worried about Obamacare being shoved down our throats we won't notice another AIG bailout to bail out Greece and other EU countries now will we??????????????? Interesting timing indeed.

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Excerpted from The Market Ticker

.........You haven't seen the half of what happened though - not yet. It appears that AIG - the company we have bailed out (thus far) to the tune of some $100 billion plus, in fact isn't done. It appears they may have written credit protection on Greece. If this allegation by the German equivalent to The New York Times is true Americans are going to be asked to pay billions of dollars - or more likely, hundreds of billions (since Greece is almost certainly not the only place - try Spain, Portugal, Ireland, etc) to bail out a bunch of FOREIGN NATIONS.

Do you both think Americans can and will pay that bill? A bill that has been forced on us, and yet benefits not The United States economy, but foreigners?

Wars - big wars - start over much less, my friends.

Oh, and let's not forget - some 30% of Greece's workers went out on strike to protest their austerity measures. That's right - one in three.

The Fed and our fabulous Treasury Secretary already gave tens of billions of our hard-earned money to foreign banks to prop them up via AIG. That was just a down payment; now we all get to - quite literally - buy all their houses over in Europe. They get to keep living in them. ........

http://market-ticker.org/archives/1993-How-Long-Before-You-Wake-Up,-Politicos.html

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Sunday, February 21, 2010

German Paper Says AIG May Have Sold CDS on Greece

Source NakedCapitalism.com

From FAZ,. Note the text below, translated by EuroSavant, replaces an earlier GoogleTranslate version. You can read an English version of the entire article here.

http://www.eurosavant.com/2010/02/21/cds-just-another-evanescent-bubble/

In the larger scheme of things, this example shows how AIG could have, and probably did, serve to channel funds from the public at large to speculators.

London investment bankers name AIG as a further CDS-seller. That company had to be nationalized during the financial crisis due to its having written insolvency insurance on American mortgages. This debt-load would have led to the collapse of the world s biggest insurer. Prior to the financial crisis AIG is said to have widely held State credit-risk. If yet-larger insurance positions on Greece exist, then the American government would have a strong interest in preventing that country s insolvency.

Even if these are mere rumors about the Greek banks and AIG, this example makes clear the weakness of CDS markets. This protection is sold by banks or insurers who themselves have access only to limited capital resources. They have as a rule clearly lesser credit-worthiness than the states for which they are selling insolvency protection. Insurance by CDS could turn out to be just a bubble.

http://www.nakedcapitalism.com/2010/02/german-paper-says-aig-may-have-sold-cds-on-greece.html#comments

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