Finally, the News Media covering AIG CDS! (bankrupt, insurance, agent)

[TennisDD]

I have been on and off the forum. Our media has driven me nuts with not covering the story. Finally, they are reporting what I was saying back in November about AIG and Credit Default Swaps and how big and important this situation is.

Remember at that time, all the media focused on was a stupid insurance convention of agents who were rewarded for bringing in business to American General Life Insurance Company, which is a profitable subsidiary of AIG.

Congress just kept going on and on about this executive retreat, where in fact there were no AIG executives, but 10 Employees from American General Life Insurance and insurance producers in the family market.

This should wake up our population on how much of a joke our Congress is(on both sides). Spending all this time on an insurance convention worth pennies compared to the now 61 billions lost in a quarter!!!!!!!! by AIG product division.

It is scary out there, but I am glad that our news media yesterday finally covered the correct story!!!!!!!!!!

AIG will come back for more money, you can almost bet on it unless the economy improves.
Just remember, this was not caused by insurance agents, but those in AIG product division that gambled billions in the CDS/mortgage back securities.

Oh yes, AIG is by far the biggest on this, but not the only one. There is a reason why they cannot sell their assests to other insurance companies. Just take a look at Genworth or Prudential.

Some scary times indeed, but at least people are getting informed.

[harry chickpea]

I agree that the CDS issue is the key to the whole puzzle, and yes I remember your comments.

How long before someone with power realizes that the CDS figures are based on air, and the whole CDS system has to be declared illegal, uncollectable, and destroyed? Yeah, if someone holds physical stock in a company and wants to insure that, maybe something similar makes sense (with extreme limitations, such as only being able to insure 1/2 of the current stock value).

Bailing out AIG at this point is wasting money bailing out speculation and greed.

[TennisDD]

Harry Chickpea, you get it! I agree 100% with what you said. The CDS should be illegal. It is good that people are finally waking up to this. Yes it is bad CEO's go on private planes and get crazy bonuses, but that is pennies when you look at the CDS.

Look at Lehman, Bears Stearns, AIG and you will see CDS galore.

Here is hoping that this issue will stay upfront and that our media quit sensationalizing non issues.

[Philosophizer]

Wish I would have gotten in a bet that this entire system was gunna hit the fan during the peak of the housing bubble. Those who bet against the system are doing quite well for themselves right now, though I in no way endorse them getting paid directly from the treasury. Let AIG go bankrupt and let the courts determine what these CDS owners get. Of course, the CDS market is so large and interconnected, and there is no money to make good on 95% on the existing CDS's. I think the entire system is doomed to fail anyway (firms have moved counted on CDS money being there and have expanded their balance sheets accordingly for money that isn't there), and no amount of government bail outs are going to cover all of the losses.