Until very recently the counterparties to the AIG CDS's that were settled with the bailout money were kept a secret. The first person to call attention to this publicly was Paul Krugman and shortly after he did so we learned who those counter parties were. Or did we? The AIG bonus thing was not a secret before this week, it simply came to our attention recently. Complexity and jargon pick up where secrecy leaves off.
This thing in its fullness has not yet hit that famous fan. How will our government behave when at least two of the three branches are completely covered with the digested waste of Goldman Sachs et al and the Gramm-Leach-Bliley Act?
They will try to protect each other for as long as they can, but the truth will prevail and it won't be pretty. This is a LOT bigger than Watergate.
Friday, March 20, 2009
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