主题：【原创】再战江湖（3）没头脑和不高兴，还有鲍莫尔的病 -- 万里风中虎

blame.

CDO/securitiziation does not make sense if those insurance firms price their CDS product more conservatively.

I know that even in 2007, some insurance firms still priced insurance contracts on MBS with a simple 3% cut, the historical rate from their municipal bond business.

AIG FP failure is just another example: you look at the credentials of their FP heads. Those are just ass-kisser idiots and many of them do not understand their products at all. The fact that those idiots got promoted to key growth division just told you how incompetent the whole AIG management team were.

The only lucky thing was that AIG dramatically cut those CDS product sale after 2005. Otherwise, American taxpayers would have experienced a bigger shock.

BTW, Ace Greenberg was literatally a financial criminal--he was lucky that he did not end up in jail. AIG developed lots of toxic insurance products that were used to manipulate public companies' earnings numbers.

He lost billions after AIG's demise and he deserved that.