Wednesday, March 25, 2009

Letter - AIG

I found this letter very interesting (sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group’s financial products unit, to Edward M. Liddy, the chief executive of A.I.G.)


  1. AIG like millions of others, from individuals to firms and super firms, cooked their books for years. We are becoming sensitive only because our money is going to them. Government should have let them go down like Lehman brothers. It's not going to work. Their system is fundamentally broken. Like those stupid people who faked their income (after Clinton's deregulation orders) and got into mortgages they knew they were not going to afford to pay...even the banks knew it but they wanted customers too like everybody else, so it created the whole bubble, real estate prices went up and the idiots who could not even pay their loans used the added value of their houses and refinanced to cash out! Now every one, individuals and banks are paying the price for their own mistakes.

  2. You may be right ... (although I am suspicious of very general claims :) but the point of the letter to me was (1) being aware of populist pressures and propaganda (2) being aware of the serious negative side effects of government interventions, among other things

    Also, each individual is an individual with certain rights, categorizing people, for example as AIG executives, (which happens a lot during populist outrages) is very misleading


IT'S NOT ...

.. ``It's not your spread, and it's not how strong you are, and it's not how fast you are, because you have all those thing...