OT AIG: So, is this what the bailout is all about?
"Out of the $85B emergency bailout money, $12.9B (15%) flowed right to Goldman Sachs"
Why would you or anybody be surprised by this? AIG was in the business of insuring credit default swaps because they are in the insurance business. Since credit default swaps, in the rear view mirror at least, were crap balloons ready to explode, maybe AIG shouldn't have been touching them with their policies. Of course they couldn't, there was way too much money to be made on insuring them.
If Goldman Sachs was conservative enought to hedge their credit default swap position(s) with AIG insurance policies, then it was incumbant upon AIG to properly value what that insurance should cost Goldman Sachs.
The only thing to pity here is how inbred and overlapping the few big banks are in their responsibility for creating the whole damn runup. They all were in eachothers' pockets and all figuring out ways to value paper (read here CRAP not worth valuing) so they all could line their pockets.
aj
