The statement that literally spells out the problem clearly was this one, "Customers came to us and wanted risk, we gave it them."
The Goldman Sachs 'model' for investment was to take any request and treat it seriously regardless of the fact it would run the company into insolvency.
It is a scam and they literally banked on AIG to 'bail them out of trouble,' WHILE they never checked to realize that AIG was unable to bailout any of the huge investment banks out of trouble, yet alone, one of them.
Not only that, but, AIG was not insuring companies that were PLANNING on bankruptcy, they were insuring companies that were supposed to be well run and able to produce a good product. The reason why there was so much pressure on AIG to bailout their 'insured' was because the citizens of the USA were scared and other countries were either scared to using the opportunity to literally get money into their treasuries.
AIG was covering the investment banks from 'market fluctuations' that were somewhat unpredictable, such as, a war within Saudi Arabia that would imperil oil shipments or a revolution in China that would stop its economic engine.
THAT was AIG's responsibility, but, not this. This was all premeditated. It was a poor risk in the beginning, it continued to be a poor risk throughout its market and then all of a sudden and to no surprise from those that were watching it, there was collapse. It was easy from that vantage point to demand the government to let them fail, but, they had no clue and they weren't watching the mess from day to day.
In all honesty, it isn't the government's job to be pre-occupied with private industry, in this case the financial markets. Up to the collapse of 2008, the laws that were governing such potential were wiped off the books. So, the government really had no PART in the way of oversight. It is highly questionable with the removal of those regulations if 'regulators' had any authority either.
When all the regulations were removed it was with the understanding that the 'genius' of Wall Street could exceed the potential it had to make the global economy HUM. All it did was to seek higher and higher risk taking and the only people that profited were the CEOs themselves. Surprise.
It is not the sovereign authority of any country to 'take the part' of corruption and these dynamics are loaded with it.
The financial institutions are guilty as sin and they don't care. They don't have to care, it is up to us to care.
It is a scam and they literally banked on AIG to 'bail them out of trouble,' WHILE they never checked to realize that AIG was unable to bailout any of the huge investment banks out of trouble, yet alone, one of them.
Not only that, but, AIG was not insuring companies that were PLANNING on bankruptcy, they were insuring companies that were supposed to be well run and able to produce a good product. The reason why there was so much pressure on AIG to bailout their 'insured' was because the citizens of the USA were scared and other countries were either scared to using the opportunity to literally get money into their treasuries.
AIG was covering the investment banks from 'market fluctuations' that were somewhat unpredictable, such as, a war within Saudi Arabia that would imperil oil shipments or a revolution in China that would stop its economic engine.
THAT was AIG's responsibility, but, not this. This was all premeditated. It was a poor risk in the beginning, it continued to be a poor risk throughout its market and then all of a sudden and to no surprise from those that were watching it, there was collapse. It was easy from that vantage point to demand the government to let them fail, but, they had no clue and they weren't watching the mess from day to day.
In all honesty, it isn't the government's job to be pre-occupied with private industry, in this case the financial markets. Up to the collapse of 2008, the laws that were governing such potential were wiped off the books. So, the government really had no PART in the way of oversight. It is highly questionable with the removal of those regulations if 'regulators' had any authority either.
When all the regulations were removed it was with the understanding that the 'genius' of Wall Street could exceed the potential it had to make the global economy HUM. All it did was to seek higher and higher risk taking and the only people that profited were the CEOs themselves. Surprise.
It is not the sovereign authority of any country to 'take the part' of corruption and these dynamics are loaded with it.
The financial institutions are guilty as sin and they don't care. They don't have to care, it is up to us to care.
