On another thread, it was suggested that the government was in some way responsible for AIG's behavior.
Someone named Doug Miller said:
"Then there is the other side of this argument which says that the government forced banks to loan to people who couldn't afford such loans."
Doug, this is about AIG, not banks. AIG was not and is not a bank. I have never seen an argument anywhere that the government forced AIG to do anything that caused their derivatives portfolio to collapse and bankrupt the company. AIG never made that argument. No one I know made that argument. AIG collapsed because it made side bets in the derivatives market using credit defaults swaps. The made horrible bets and the bets went sour. It is as simple as that. I can't see any "other side" to this.
Can you point me to any information, a link or anything, that shows AIG was in any way forced by the government to bet the way it did in the swaps market? Or were you not talking about AIG?
Perhaps Mr. Miller did not see my reply. If you get a chance, please respond.
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