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Financial Crisis: Goldman does in AIG, you, and me

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Sunday, February 7th, 2010 at 4:22 pm

Against Monopoly
GRETCHEN MORGENSON and LOUISE STORY write in the New York Times today a long story about how Goldman Sachs raped AIG and in the process, got us tax payers, all of the unemployed in America, and all of the savers who received low interest rates because of the need to stimulate the economy link here. It didn’t cause all of the problem, but it lit the match that started the conflagration, forced the bailout of AIG, and then made out in the wreckage. Building on its connections and the boldness of its gunslingers, it flourished and now it seems to be in a position to hold off even the most minor reforms that have been put forth by the administration.

Read it. The story is too long to repeat here to get the flavor of what went on. There are lots of details that will emerge in the future, but this reporting tells us how bad it was and hints at what is to come.

I want to end with this Dilbert which is a kind of visual epitaph on where we are today.