Wednesday, January 27, 2010

Tim Geithner to Go Under the Knife - Answer for AIG Handling

Timmy G is scheduled for some staged grilling by the House Committee on Oversight and Government Reform today at 10am. The Committee hearing can be watched live here. And here is Geithner's prepared testimony. A quick read is recommended to understand the magnitude of the collapse facing the world. Underscores once again the need to have a safety investment in real assets such as gold. What is preventing the same crisis from happening again? Absolutely Nothing. There have been NO reforms to correct the rapid run downhill. And now some wisdom from Timmy G himself:
Without assistance the AIG parent holding company would have been forced to file for bankruptcy protection like Lehman, resulting in a default on over $100bn of debt, as well as trillions of dollars of derivatives.
Ah those wonderful derivatives...

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