I came across an article in NY times by Morgenson regarding how the insurance giant A.I.G went down.
The article gives an immaculate picture of how Joseph J. Cassano and his 376 member AIG financial group, stationed at London, bought about the demise of the parent company via Collateral Debt Obligations(CDO).
I am still unsure whether the $85 billion bail out by Fed is enough to sustain AIG, because with the number of home mortage defaulters increasing, the CDO liablity of AIG to its clients is bound to increase.
From latter part of the 20th century, the way economy is running has become incomprehensible to a common man. I believe if we want to improve this world, knowing economy is one of the most important things. Time to buckle up and do some reading.
The article gives an immaculate picture of how Joseph J. Cassano and his 376 member AIG financial group, stationed at London, bought about the demise of the parent company via Collateral Debt Obligations(CDO).
I am still unsure whether the $85 billion bail out by Fed is enough to sustain AIG, because with the number of home mortage defaulters increasing, the CDO liablity of AIG to its clients is bound to increase.
From latter part of the 20th century, the way economy is running has become incomprehensible to a common man. I believe if we want to improve this world, knowing economy is one of the most important things. Time to buckle up and do some reading.
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