Quote:
Originally Posted by RIJIMMY
If government officials were to break the contracts, they would be “breaking a bond,” Ms. Meyer says. “They are raising a whole new question about the trust and commitment organizations have to their employees.”
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This is perhaps the biggest crock of %$%$%$%$ I've ever heard.
These executives understood exactly the risk they were putting AIG under when they chose to insure sub-prime loans from default without adequate cash ratios in the bank.
What people don't realize is that a lot of the money sent to AIG is then being sent to other banks as insurance payoffs for mortgage defaults, because the exects at AIG gambled on the premise that housing prices would never fall and they would never have to pay out.
Sounds like a ponzi scheme to me. "Bond" my ass...
-spence