tag:blogger.com,1999:blog-5263384077652689668.post4557101034993379069..comments2011-12-19T17:10:52.992-08:00Comments on The WFA Report: Alphabet Soup Spells BlahIncontrovertiblehttp://www.blogger.com/profile/02883145586324881225noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5263384077652689668.post-50013111023772053592009-03-17T12:19:00.000-07:002009-03-17T12:19:00.000-07:00Your analysis of the TARP funds funneling through ...Your analysis of the TARP funds funneling through AIG to Goldman Sachs, et <BR/>al, is correct. The fact that they want to pay the money back is nothing but <BR/>good, IMHO.<BR/><BR/>When you think about the huge amount of money AIG owed these firms, you can <BR/>see how the whole monetary system would have frozen up without government <BR/>action. No firm in their right mind would trust any other counterparty going <BR/>forward.<BR/><BR/>Letting Lehman go kaput was a real mistake. But then letting AIG go as well could have spelled the end of the financial system.Incontrovertiblehttps://www.blogger.com/profile/02883145586324881225noreply@blogger.comtag:blogger.com,1999:blog-5263384077652689668.post-71077129609590271262009-03-17T12:15:00.000-07:002009-03-17T12:15:00.000-07:00I just wanted to make one comment on the AIG issue...I just wanted to make one comment on the AIG issue which seems to be at the center of public rage these days, and for good reason. My comment is not really about AIG though.<BR/><BR/>I have noticed that some other firms, such as Goldman Sachs, have said they want to pay back the TARP money so as to not have to restrict executive pay. They thus seem to be acting as if they did not really need the bailout. Well, first of all, seems that they did, so any entity pretending not to have needed the money could arguably be subject to pay restrictions even after TARP money is paid back (in my opinion). And second, all of the firms who were paid by AIG with TARP money AIG received really received additional TARP money indirectly. It is as if the TARP money was really injected into the financial system through AIG. Had the government not stepped in and given these monies to AIG, such firms as Goldman would have taken big losses on transactions that would have bounced! I kind of can't believe I haven't heard this comment in the financial press. Maybe I just missed it.Anonymousnoreply@blogger.com