Tuesday, September 16, 2008

AIG's woes-

Here's a pretty good explanation of why AIG might fall under the bus in a few weeks.-

Remember, "credit default swaps" are the cornerstone of the unregulated Derivatives Market, and the real reason for the freeze in liquidity related to the housing bust.

If it were just housing prices, everything would work itself out, but it the newly (Nov. 2000) unregulated Derivatives Market (that no one seems to know about) that is the real source of this mess.

60 Trillion dollars in unreported assets all frozen up and in freefall are the real source of the problem here - not stocks or bonds or housing prices.

Remember - the Derivatives Market - your key to understanding what will be going on over the next six months.

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