Polistra's old Law of the Unthinkable: When the elites agree uniformly that X is unthinkable, then X is true and necessary.
The elites all agree that letting AIG fail is unthinkable.
Doesn't wash, even on the face of it. As Ben Stein and others have pointed out, the "honest" part of AIG is not really an insurance company but a holding company for several insurance companies. Spin off those companies, then close and confiscate the rest. If that causes a loss to hedge funds, too fucking bad. Hedge funds are gamblers by definition
and they supposedly expect to lose on occasion. Well, this is a great occasion to let them lose billions or trillions or quadrillions or whatever the imaginary number is.
Obviously that's not the real reason why we need to continue these monstrous thefts. Sooner or later we'll get the real reason.
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Refreshing exception to the Unthinkable chorus: Rep Minnick of Idaho. In this morning's hearing on bonuses, Minnick said simply and flatly that we should allow AIG to go bankrupt and appoint a receiver to distribute the assets and debts. Bravo, Walt!
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Obama's short 'front lawn' speech is exactly on point ... "We need to move away from a business model that generates paper wealth, and move toward generating real wealth." Trouble is, he's not doing
anything to make this happen. He's not closing down and jailing the paper-wealth operators, and his proposals for carbon cap scams are just a new paper-wealth bubble. Good words, bad actions.