That's the reality of the financial industry's pay practices. Why is AIG not in bankruptcy now? Are they not simply looting from the taxpayer now? That would prevent further "bonuses" for the "financial products group". Why is that group not in liquidation? One has to be delusional to think such a group can have any existence beyond orderly liquidation. One simply needs clerks to liquidation, not highly paid traders.
Timmy Geitner is all alone in his sandbox with no staff, so he's being scammed by the sharks on the Street. Wonderful.
Obama talks more & more, but can't or won't fill the positions at Treasury. His chief of staff is a politico. Does no one in the Obama administration know how to run an operation ?
Credit Default Swaps
For this CDS clearing house that is being created, I hope that strict position limits and collateral requirements are being imposed. Otherwise, it's a giant pitfall that can bring down all participants in some future severe recession.
Amazing to see AA at $5/share. I'm wary of its perennially poor management, but I think I'll look at its balance sheet to see if an Obama Fund investment in it might be a reasonable risk-reward opportunity.
The GE investment by Obama Fund has worked well, so far.
PS: Doing AA work, it's sickening to see that stupid management spent billions buying back stock in 2007 at high prices. I can see why they are doing that stock offering and convert, as they have excess short term liabilities and too few truly liquid current assets. More management stupidity: as cyclical company running on little net working capital and even too much of that in inventories.
Word of the Day
"Purulent" - adjective [$10]
Purulent means 1. consisting of or containing pus; 2. discharging pus.
Sentence: Is it not now obvious that AIG is a purulent wound in the financial markets that needs to be cauterized?
Le Mot du Jour
"Épreuve" - noun, feminine
Épreuve means 1. test; 2. ordeal, trial, hardship.
La Phrase: L'administration Obama est mise à l'épreuve de AIG
Sentence: The Obama administration is put to the test by AIG.