Jerome a Paris gets to the nub of our financial dilemma:
Again: the bigger problem is not worthless assets, it's unlimited liabilities on all the financial bets that were made.
...What is depressing is that this money - staggering amounts of money - is being wasted when it could be used in ways that actually help the economy (hell, giving a $40,000 check to every living American would be a way smarter use of the same money).
What is so depressing is that the goal still seems to be to save banks when it should be to save the economy.
AIG underwrote bets for people who were never part of the transaction (neither as a borrower nor as a lender), but those who placed their bets that the system would fail. Some $600 Trillion were handed out to any and all comers. So is the world in hock to the masters of the universe for this immoral, and frankly fraudulent gamble? Thus far, it looks like the answer is yes. No wonder Jerome is depressed. I'm depressed just thinking about it.
* fixed misspelling