Quote:
Originally Posted by Doctor Dre
If AIG goes out of business today it's the colapse of the financial system as we know it...
There are multiple multiple times the GDP of the entire planet in credit default swaps... that means every bank and compagny that have them would almost instantly go bankrupt. That probably includes the bank where your money is.
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Yup AIG can't fail. The entire financial system is way too interconnected. In fact AIG was fine until Lehman Brothers was allowed to fail. Once they failed AIG had a mess on their hands from the credit default swaps on Lehman Brothers mortgages. If AIG goes down suddenly this situation gets way uglier for all the banks.