If it is any consolation the Sage of Omaha in his letter to shareholders also paints a grim picture having experienced the worst year. Has he lost it too I wonder?
On the same note I was watching CNBC the other the focus has been on Obama’s rescue will it work, where is it heading to etc…etc and they had Maurice Greensberg (former CEO of AIG) on Squawk Box understandably he was angry at what was happening to a once good business. “I have lost over $2bn in personal wealth at AIG”. Why didn’t he sell when things started going wrong? Like the rest of us AIG was just too big to fail we could not just take that in.
‘AIG management didn’t understand international business’ and to think that the government is essentially running AIG is scary. Come to think of it the government has blundered left right and centre in our case when it comes to management – from oil distribution to maize. I understand those who are jittery at the current trend – good intentions are not enough.
Its collapse was unthinkable.
Moral hazard - the tendency of bankers to make bad loans based on an expectation that lender of last resort (CBK) will bail out troubled banks.
Too big to fail syndrome – AIG, Fannie Mae, Freddie Mac
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment