Daily Archives: September 28, 2008

Quote of the day

“One thing is certain. No one – no politician, no investment banker, no television commentator, no economist – should be able to say again with a straight face that here in the United States we just let markets do whatever markets do and everything works out for the best.”

– AFL-CIO’s John Sweeney


I’ve seen live blogging of politics and conferences, but this is new to me. And yet I think baseball is perfect for live blogging. I hope there is more of this! If you are a Mets or Marlins fan, check it out at http://bats.blogs.nytimes.com/.

Another nice piece of innovation from nytimes.com

The Fall of AIG and it’s relationship to Drexel Burnham Lambert

This article, Behind Insurer’s Crisis, a Blind Eye to a Web of Risk in the NYTimes.com has a great rundown of how AIG crashed and burned. It turns out that much of the problem revolved around a unit of AIG known as AIGFP. As the article points out:

‘The insurance giant’s London unit was known as A.I.G. Financial Products, or A.I.G.F.P. It was run with almost complete autonomy, and with an iron hand, by Joseph J. Cassano, according to current and former A.I.G. employees.

A onetime executive with Drexel Burnham Lambert — the investment bank made famous in the 1980s by the junk bond king Michael R. Milken, who later pleaded guilty to six felony charges — Mr. Cassano helped start the London unit in 1987.’

What comes around goes around. No doubt some of the brains behind the subprime meltdown are already dreaming up new ways to leverage us into the next disaster.

Heck of a job, Mr. Cassano.