Doe Sun said:
Quit trying to kick knowledge when you know nothing at all. AIG didn't insure money imbecile. Do your homework before making a lame argument. You obviously don't get it yourself. But I can see why you're mad, since you're one of the broke ones thinking the bottom loses more than the top.
"A subsidiary of AIG wrote insurance in the form of credit default swaps, meaning it offered buyers insurance protection against losses on debts and loans of borrowers, to the tune of $447 billion. But the mix was toxic. They also sold insurance on esoteric a.sset-backed security pools – securities like collateralized debt obligations (CDOs), pools of subprime mortgages, pools of Alt-A mortgages, prime mortgage pools and collateralized loan obligations. The subsidiary collected a lot of premium income and its earnings were robust.
When the housing market collapsed, imploding home prices resulted in precipitously rising foreclosures. The mortgage pools AIG insured began to fall in value. Additionally, the credit crisis began to take its toll on leveraged loans and it saw mounting losses on the loan pools it had insured."
I'm not mad at all. I own a house, an m5, and have money saved up. I do just fine for myself. I just hate when people act like banks are a good thing. The FDIC's sole purpose is to keep people from withdrawing their money from banks. If massive bank runs started happening the Federal Reserve would have printing presses running on overdrive