Tuesday, March 17, 2009

Semantics

We should really stop calling the AIG payments a bailout of AIG - more honest (and perhaps actually more politically palatable) to describe it as the CDS bailout. AIG, as the largest seller of CDSs, was simply a conduit for the payments to the purchasers of CDS protection - that money did not stay with AIG or go to its executives or shareholders.

No comments: