Replies to post #614326 on Zeev's Turnips Patch-No Politics (ZEEV)

[brainlessone]

the only thing I know about some of Aig's business is that they have to change the collateralization if the underlying asset tanks. the money goes somewhere and is not spent, its stuck on a ledger page. assuming the underlying asset value improves, and then the money would not be needed. this money does not increase money supply nor harm the economy like 400 billion of ear marked politically correct spending bills. i dont know how much of the billions going to aig act in this way

but why the move isnt to protect the underlying asset valuation, rather than the legal contracts in place is beyond me. and that answer is what needs to be known. and i need to know what these assets that we are protecting are