The View From 1776
Saturday, November 28, 2009
Run for your life if someone tells you, “We’re from the government and we’re here to help you.” As President Reagan said, government is the problem, not the solution. And the government’s solution to the AIG crisis was apparently unneeded.
Now we learn that the New York Federal Reserve Bank president Timothy Geithner, presently Treasury Secretary, did not believe that bankruptcy of insurance giant AIG would have threatened the entire financial system. Why then a several trillion dollar bailout?
Quote from the Wall Street Journal op-ed article:
But the New York Fed is the regulatory body most familiar with the CDS market. If that agency did not believe AIG’s failure would have actually brought down its counterparties