It's been 18 weeks since taxpayers rescued AIG to save Goldman Sachs, a few large hedge funds and several European banks, who all utilized the unhedged luddites of AIG to protect their own weakening portfolios. In late 2007 and early 2008 the brainiacs at Goldman hedged their porfolio of shit assets with a shit insurer, because well, they're Goldman Sachs, Lord of Idiots. Turns out Euro banks had been hedging their exposure to the mortgage pile on their books for years as a means to skirt regulations on capital ratios. Rule Bending Banking Bastards 101.
The problem was AIG didn't hedge their own exposure. They couldn't. They were the 'safe' place to buy protection. And the shitkeepers in control of AIG allowed their exposure to other people's waste to grow so large that there was no one capable of handling a hedge that size.
I recall a press release (can't find it now) from AIG's cfo in February of 2008 whining noticably about mark-to-market requirements being unfair. It was an obvious tell. It was the tell of early 2008. Such a public cry about accounting could only mean they were swimming in a brown pool. Turns out it was not a pool.
So far AIG has cost your kids $150 billion. Yes, $150 billion, go ahead and let it sink in. And the number will likely be closer to $200 billion the next time we're forced to mention them. They're in the news again this morning, with a piece in the WSJ about something extra-Mensa they were doing called '10 Cubed'. Please take a moment to consider just how stupid you have to be to lose $150 billion selling insurance on other people's shit. Thank you for that collective moment.
Inside I have more photo-shopped AIG photos with commentary. And since we taxpayers are the winners in the AIG Shit Sweepstakes, I've decided to do an AIG at the Outhouse links edition. Inside I am gathering articles on the entire mess. I've read way too many on AIG and I will deliver the 15 best links out there, both background and from today.
Here's the goods right here. The 13 best articles on AIG in one link: http://bit.ly/y9Fv
updated. title changed.
Updated with more photos.