American Taxpayer Bailout Of AIG Goes Directly To Foreign Banks

We wrote of this scam a handful of weeks ago but here is the actual list. Where's my bailout from the Swiss, German or British government? This was easily avoidable as we wrote at that time. Identify these counterparties and alert the appropriate governments that they have to assume these counterparty risks or the U.S. is going to allow them to remain unpaid given AIG is essentially in receivership. Instead, somehow American taxpayers get a major shaft.

I believe policy makers are severely underestimating the negative sentiment they are reinforcing - something we have highlighted as far back as the second half of 2007. Their policy actions are destroying any semblance of confidence that remains.