weinraub’s words

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GM, AIG, GS, and USA

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So, USA bails out AIG which uses the funds to pay GS which has connections to senior USA officials. Now a USA bailout of GM is complicated by objections from GM bondholders, some of whom would prefer GM default so they could collect AIG-supplied credit default swaps, swaps which are claimable because USA bailed out AIG.

What a mess…

This is why the government really shouldn’t be in this at all.

But this isn’t the should-world, it’s the real-world. Sigh…