chris is by far, the smarest guy in the room and this article is further evidence of just how corrupt the wall street/washington nexis really is.
“But AIG now is appropriately a $43 stock because it is badly run, with political rather than economic goals. Our guess is that the real value of the ongoing business is about $30, after franchise damage and recent asset stripping. But as discussed above, that theoretical $30 is the net of $40 worth of assets with $10 in excess liabilities. Again, Geithner’s refusal to restructure AIG, as with the zombie banks, simply kicks the can down the road. The market understands that politicos and hacks led by Secretary Geithner are at this moment parsing the $40 and will gladly sell it for less than half, in order to declare victory. That’s apparently the reason for Hank Greenberg’s recent protest in the Wall Street Journal.
Which brings us back to the concept of the “blood doll,” the source of subsidy for the real zombie banks of Wall Street. As we discribed in 2009, AIG was the blood doll of GS, DB, et al. The firm was not a move-mover, but a chump, run by and for the largest New York dealers banks who suggested strategies and trades. And now we see that AIG was kept alive not to save the global financial system from meltdown, but rather as as a future blood doll for those bankers prescient enough to own senior Fed and Treasury officials. Some of the same banks that caused the collapse of AIG and the subsequent looting of the Fed are now acting as underwriters in an offering that nobody should touch. But no one says a word, either in Washington or on Wall Street, because in both venues the truth is a matter of perspective.’
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