Sep 17, 2008

For almost 100 years AIG has profited in part by using its negotiable(less that 2%) underwriting profits to invest in large Chinese infrastructure projects, Vietnamese ports, etc. for greater profits.

Now that the Fed is endorsing AIG's business strategy, will laws need to be written to legalize AIG's risky investments in less than stellar mortgages elsewhere in the world, REITs in Singapore, Thailand, etc.? And what of its premier third world consumer product, life insurance policies cum bank accounts?

Is the Fed betting that by bailing out AIG they will stave off some of the company's riskiest loans ... long enough to liquidate its position? (Doesn't it realize that foreign consumers are smarter than that?)

I sure do hope that our Fed, as it elbows its way into place as the nerve center of our now-government controlled, makes some wise investments to balance w its risky ones. I suggest we the taxpayers buy Mars. Now.

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