Will AIG force The US to bailout Greece?

[conraddobler]

http://www.businessinsider.com/aig-connection-might-bring-us-into-the-greek-bailout-2010-2

AIG is the newest name to be linked with Greece as the bailed out insurer has emerged as a source of CDS on the troubled state.

Two reports this weekend, both based on a German newspaper article, cited the U.S. government owned firm as a key supplier of CDS on Greek debt.

I got this from a rumors section on a forum I read.

http://www.tickerforum.org/cgi-ticker/akcs-www?post=127941&page=1

The thread starter postulated this 11 days ago as a rumor and now it's starting to pop up in articles from the German press and the linked article.

The signifigance of this could be huge.

If AIG wrote swaps all over Europe....... ie the PIIGS, ..........

We own AIG.

The connection is like a trunk line in a huge lightning storm you can't turn off, one good strike and it comes zapping into the US taxpayer for any bad bets to be covered.

This is like a bad bad dream.

 

[jefftheshark]

I would suspect that the the US would use the IMF to bailout Greece before AIG.

But I've also read that Northern European banks are far more on the hook for the Southern countries than the US.

But really, who knows, and from a certain standpoint, who cares? There will be some kind of Archduke Ferdinand moment that comes from out of nowhere to set off the powder keg.

Or there won't.


JTS