> The problem was that no-one (including the board of directors of AIG knew > that AIG was insolvent until the day the government intervened. Bubbles and > panics are part of the nature of the market. You can repeat your mantra of > free markets are perfect until you are blue in the face, but AIG was the > biggest insurance company in the world and no one had any idea of their > problems.
It amazes me (was this AIG or Fanny and Freddie, I forget) that they went to ask for some 30 Billion but on a couple of days investigation it turned out to be more like 70 Billion was needed to meet their obligations. The management of the relevant company literally did not know the state of their cash flow. And they have the temerity to continue to claim they know something about economics. Not knowing your businesses demands on cash flow and impending ability to provide for its demands is impressive incompetence, except when its more accurately attributed to the carelessness of over-reaching greed. _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
