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Old 04-22-2009, 02:40 PM
Watts Watts is offline
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Default Aig

Quick Rant-

AIG is not responsible for the mess. We have numerous rating agencies that are supposed to analyze an asset, figure out its risk, and rate it accordingly. AIG insures assets based on their rating.

Banks and investors bought assets rated AAA and had AIG insure them. Then, when the rating agencies turned out to be wrong, AIG was stuck with the losses.

The Obama administration, Barney Frank, and Chris Dodd all felt that it was necessary to put in a clause into the bailout to allow the executives at AIG to get their retainment bonuses.

AIG played a huge role in this mess, but it pales in comparison to the problems caused by politicians, poor regulation, mortgage companies, idiot financial advisors, academia, and the rating companies.

AIG is just a scape goat. It was a great company leading up to the crash, and now it has to change its name, be under constant public scrutiny, and get flak from the idiots that created the mess.

A similar situation would be walking into your bosses office, taking a soda he offered you, and then getting reemed for not leaving a soda for the next guy. It is just a load of bull.

End Rant.
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  #2  
Old 04-25-2009, 06:22 AM
brian brian is offline
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Default Re: Aig

Indeed, it's not a failure of one company or individual, but the collective system.

What amazes me is how at AIG you have all these supposedly extremely qualified assessors, who aren't capable of figuring out that the supposed free money they were printing by insuring triple A debt was somehow flawed.

The conquest of common sense by greed is really staggering in general across all of the financial institutions.

I think the only one who really got out was Goldman Sachs - create toxic debt, sell it on, but not buy it. That should have been a warning signal to somebody!
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Old 04-25-2009, 12:44 PM
Watts Watts is offline
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Default Re: Aig

More rant-
To me, this economic situation leaves me with two big questions : "Why do we have rating agencies that can't understand the assets they rate?" and like the cover of business week, "What good are economists?"

With several major rating agencies, you think one would have the gull to question an asset that didn't make sense. If an asset falls far outside the risk/return payoff norm, you should probably question it. A similar situation where the numbers didn't add up, Enron. Sure, you could say that government regulation failed, but that's pretty much a given whenever the government regulates.

As far as economists, why couldn't they predict any of the current crisis? Sure, a few did, but the fact that there wasn't a general consensus in the economy about something so obvious draws to attention the lack of intelligence in the economic profession. Going through New Jersey and seeing a plot of land for $1,000,000 that amounted to maybe 8 acres near a very small suburb with no buildings was enough to tell me property prices were out of wack.

I guess it is the problem with every profession though with economists. The good ones are out consulting making ridiculous incomes, while the crappy ones are advising politicians and pushing agendas. Hey economists, if you're going to have an agenda, make it to stabilize the economy, not push some polarized political ideology.

Which brings me to another rant, Chris Dodd and Barney Frank, where are your PHD's in finance? Oh really, don't have them? Well, you apparently can't wrap your over aged smug heads around the finance sector of the economy, so get the heck out of the finance committee.

-end rant

P.S. The reason the AIG deal irks me the most is the fact that they are being used for political gain. Obama signed the bill, called foul, and watched his popularity rise. It just seems wrong.

P.S.S. - Nicely put brian.
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The conquest of common sense by greed is really staggering in general across all of the financial institutions.

Last edited by Watts; 04-25-2009 at 03:48 PM.
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Old 04-27-2009, 09:48 AM
GarySpicuzza's Avatar
GarySpicuzza GarySpicuzza is offline
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Default Re: Aig

Great thread!

My 2 cents.....

Quote:
To me, this economic situation leaves me with two big questions : "Why do we have rating agencies that can't understand the assets they rate?" and like the cover of business week, "What good are economists?"
True.

Quote:
AIG played a huge role in this mess, but it pales in comparison to the problems caused by politicians, poor regulation, mortgage companies, idiot financial advisors, academia, and the rating companies.
Exactly.

Idiot "Financial Advisors" who are Kool-Aid Drinkers. They are functionally illiterate and hopefully these BASS-reTARDS and BASS-reTARD-ETTS are out of the financial services industry.

Hockey Puck 'em...

All of 'em.

Get the PUCK out of our business.

Last edited by GarySpicuzza; 04-27-2009 at 09:50 AM.
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Old 04-27-2009, 02:45 PM
Watts Watts is offline
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Default Re: Aig

I don't know at which point in college I'm supposed to take all my common sense and throw it out the window. I have a year left and I can still tell how horribly screwed up the industry I'm getting involved in is.

If I couldn't have forseen the real estate collapse coming after 10-20 years of calling myself an expert, I'd probably consider collecting bottles for the deposit, then at least I'd know I earned my money.
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