Monday, March 22, 2010
AIG
Before anyone knew it the unthinkable was about to happen. Americas largest insurances company known as AIG was on the brink of destruction. What started the collapse of the insurance giant was a large number of was an accumulation of misplaced bets on credit default swaps. When the housing market collapsed AIG's value started to seriously plummet. If AIG was allowed to fail there is a guarentee of an economic collapse. Hank Paulson and Tim Geithner who by the way is the Secretary of Treasury in the Obama adminstration set up a 85 billion dollar bailout for the insurance giant.
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This is a topic which I think not everyone knows, but should know for it is one of the main reasons why we are in this decline. After the 85 billion dollar bailout where are we now, is do you think it is helping?
ReplyDeleteI really think bailout is really unnecessary. Look at what happened to all the auto companies! It's only going to help the executives, not middle class citizens. So what's the point of this "supposedly" a policy for public good?
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