"The Non-Event That Is AIG’s Counterparty List In Uncategorized on March 20, 2009 at 6:47 am
Why is anyone surprised that AIG made substantial payments to large financial institutions? Wasn’t the entire purpose of bailing out AIG to prevent the collapse of the financial system? Such a purpose would imply that without a bailout, the financial system would collapse. Therefore, we should expect the result of any bailout made with that purpose to result in substantial payments into the financial system. Since large financial institutions are at the heart of the financial system, we should expect such a bailout to result in substantial payments to large financial institutions. Is the world so devoid of news that such a trifling and obvious result warrants extensive coverage?
Without the report, we could not have known exactly who had received funds. But, we could have used information that was already available and apply categorical logic (or common sense if you prefer) to infer what sector was on the receiving end, as I have demonstrated above. But then again, it appears logic, common sense, and facts have nothing to do with public policy or debate on this crisis. Rather, populist rage, childish blame, and jealousy are firmly in the lead."