Funny thing when most blog entries are historic events. Here it is, the nationalization of the largest insurance company AIG.
The deal is a 85B injection of capital that pays hefty premiums and nets the govt most of the equity. Again this could turn out to be pure profit for the taxpayers. Or not.
I am actually pretty positive about this move. Even if the market will not recognize it immediately (talk of an incoming crash at roubini) I think this will be seen as a turnaround point.
I wish I was a Trillionaire right now and I could go shopping like the government. Is that CDS fresh? You sure? put me 2B of it! Oh and that MBS over there, was it frozen? Oh the govt has already reserved it! Too bad.
Long live the United States Socialist Republic (US-SR).