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<p>[QUOTE=&quot;maksimfa, post: 535460, member: 17157&quot;]Yup.&nbsp; whats another 30bil? =)&nbsp; </p><p>&nbsp;</p><p>the reason behind not letting AIG go under is that they are the biggest insurer of credit default swaps.&nbsp; </p><p>&nbsp;</p><p>I can tell you, the aig bailout money today did not even get anyone in the office excited today.&nbsp; all of the advisors here are too in shock here still about the dow breaking 7k, and what dumbfounded moves the administration makes today.</p><p>&nbsp;</p><p>The problem is , in alot of cases, the companies are toooo big to fail.</p><p>&nbsp;</p><p>AIG for instance, is the biggest insurer.&nbsp; If they go bust, a ton of life, disability, automotive, homeowner insurance policies will lapse.&nbsp; The state government would pick up the tab... and guess what... it would raise your taxes.</p><p>&nbsp;</p><p>AIG was also the biggest insurer of bank debt... IE... Lehman owes JP mogran money, Lehman fails, AIG is the insurer on the debt... they owe the money. </p><p>&nbsp;</p><p>As much as all of these banks deserve to fail, the government made alot of dumb moves in easy lending.... now we got to pay the piper.&nbsp; You dont want to pay the piper? Fine... god forbid you get into a car accident, or someone passes away... AIG had your insurance policy? Sorry, AIG went bust, you get no payment on it.</p><p>&nbsp;</p><p>With smaller banks, and we had two fail over the weekend (taken over by FDIC), or cases like indymac, there would be limited shock to the market.&nbsp; With bigger corporations, saying a bank failed, has more consequences, in particular who the insurer on their debt is.&nbsp; For all intensive purposes, </p><p>&nbsp;</p><p>Bear Sterns, Fannie, Freddie, Mer. Lynch, Wachovia, Citi, WAMU, AIG all failed.</p><p>&nbsp;</p><p>But because they did not declare official bankruptcy and were either taken over by government, or forced to merge, their debt is still being serviced, and the credit default swaps do not have to be paid out.</p><p>&nbsp;</p><p>:hatch:[/QUOTE]</p><p><br /></p>

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