I think they're paying out what nobody is speaking of: Derivative obligations. Remember, these are sorts of complex insurance policies. How else can anyone explain AIG losing 60 billion in 1 quarter? Or the total disappearance of all the money that has already been handed to them? The term "toxic assets" keeps getting tossed around by the media and then a little soft shoe number to create the illusion that these so called "toxic assets" they're speaking of are just unpaid sub-prime mortgages and defaults.
Not even close to the real issue, numbers or problem. It's all spin.
Which brings me back to my original question/point: Who are the recipients of these derivative obligations? Where is the money? Where has the "wealth" been "transferred"?
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