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That was almost entirely caused by an institution known as the BANK. Banks and hedge funds are totally different things. Likening one to the other is like sayi
by m52go 12y ago
That was almost entirely caused by an institution known as the BANK.
Banks and hedge funds are totally different things. Likening one to the other is like saying Google and Square are both evil just because they're technology companies.
You seem to lack a fundamental understanding of the financial system.
- atmosx 12y agoOh really? So in your dictionary AIG is a bank, like say BoA. You seem like having a deep understanding of the financial system. Don't forget to edit the wikipedia page, these guys got it all wrong[2] oh yes the WSJ[1] too! [1] http://online.wsj.com/articles/SB123734123180365061 http://online.wsj.com/articles/SB123734123180365061 [2] http://en.wikipedia.org/wiki/American_International_Group#Liquidity_crisis_and_government_bailout http://en.wikipedia.org/wiki/American_International_Group#Li...
- m52go 12y agoThere were many types of institutions involved in the 2008 crash, from traditional banks to investment banks to ratings agencies to insurance firms to mortgage brokers to governmental bodies and more. The root cause of the crash was unquestionably the banks. It was the banks that lowered their standards, made bad loans, and packaged them up into MBSs and CLOs to ship them off to other institutions to trade and insure so they could make more bad loans. If the banks didn't make these loans, AIG would have had nothing to insure. Goldman would have nothing to trade. S&P would have nothing to rate. Et cetera. Don't misconstrue what I'm saying as vindicating everyone else. They all royally messed up too. It's just that the banks started and perpetuated it all.