America may be forced to bail out Greece - to the tune of Billions of Dollars

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America may be forced to bail out Greece - to the tune of Billions of Dollars

The financial problems happening in Greece and Europe are not just their issues. Because AIG was bought by America, the USA picks up its debts and obligations and it appears America might have to bail out Greece, and probably other countries as well. As the quotes below show AIG may have written credit protection on Greece before they were bailed out, making America liable for the debt crisis in Europe.
... Quote:
It appears that AIG - the company we have bailed out (thus far) to the tune of some $100 billion plus, in fact isn't done. It appears they may have written credit protection on Greece.

If this allegation by the German equivalent to The New York Times is true Americans are going to be asked to pay billions of dollars - or more likely, hundreds of billions (since Greece is almost certainly not the only place - try Spain, Portugal, Ireland, etc) to bail out a bunch of FOREIGN NATIONS.


 http://market-ticker.dennin...
... Quote:
London investment bankers named the American insurer AIG as an additional seller of CDS. Before the financial crisis, AIG is said to have insured a large amount of sovereign credit risk. If there is still a major insurance positionson Greece, then the American government would have a strong interest in preventing a default of the country.

Even if it just concerns market rumours with the Greek banks and AIG, the examples illustrate the weakness of the credit default swaps market.

The protection is sold by banks or insurers, which themselves have only limited capital resources. As a general rule, they also have a much lower credit rating than the countries whose default they are insuring. The insurance provided by credit default swaps may turn out to have been a bubble.

 http://seekingalpha.com/art...
By netchicken: posted on 24-2-2010

How can you sell your debt?

I have a mortgage. It's for sale for 28 gazillion bucks cash.

Any takers?
By Kingy: posted on 25-2-2010








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