I just finished reading Chris Whalen’s piece on AIG and the implications leaves me speechless.
Here is the gist. Before credit default swaps came into vogue, insurance companies would create reinsurance contracts with each other. Reinsurance is simply one insurance company transferring some of [...]
Image by Mike Licht, NotionsCapital.com via Flickr
As the AIG bailout goes north of $160 billion dollars, I have been trying to figure out who this money is really supporting. The latest round of money illuminated that a major thrust was on maintaining AIG’s AAA rating. A number of people [...]