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+--- Thread: Anyone understand what this means? (/showthread.php?tid=3713)
Anyone understand what this means? - Fidoohki - 04-01-2009
Seriously, it sounds bad in any case...
http://blogs.barrons.com/...s-backhand-to-taxpayers/
- ECSNorway - 04-02-2009
A big part of the recent crisis involved funds based on the high-risk loans that are unlikely to be repaid. There were, IIRC, funds based on the idea that
those loans -would- never be repaid.
It sounds like AIG dumped a bunch of their worthless paper on middle-men banks -- banks who owed them money on the paper in question, based on loans that they
owned that were unlikely to be repaid - and basically said "Okay, we're just going to forget that this ever happened". They write off assets that
don't really exist, the banks write off debts that they'll never be able to repay, and AIG makes its numbers look pretty enough for the Feds.
It's kind of squirelly, but it seems legit... so far.
--
Sucrose Octanitrate.
Proof positive that with sufficient motivation, you can make anything explode.
- Fidoohki - 04-02-2009
thanks. Something to watch though.