LOL! Krugman: "All your downside are belong to us"

[Kurt_and_Hunter]

Whatever else you can say about Paul Krugman, it's remarkable having a Nobel-prize winning political blog geek.

He already uses "wing-nut" routinely. Can "Moran" be far behind?

All your downside are belong to us

AIG is much in the news these days. But I’m not sure, even now, if people are getting the ultimate message.

AIG is in trouble because it wrote many credit default swaps, in effect guaranteeing others against losses it lacked the resources to cover. We, the taxpayers, are now covering those losses, for fear that not doing so would cause a financial catastrophe. But this means that US taxpayers have now assumed the downside risks for all of AIG’s counterparties.

In effect, then, we’ve already nationalized a large part of the financial industry’s potential losses.

So at the very least, we have a right to know who the counterparties are: who are we subsidizing, here? And beyond that, shouldn’t there be some quid pro quo? Shouldn’t the US government get something in return for taking on so much of the risk?

http://krugman.blogs.nytimes.com/2009/03/03/all-your-downside-are-belong-to-us/

[Enrique]

1. I wonder how many letters the NYT gets

pointing out the grammatical mistake. :-)

[joeglow3]

2. Been a while seen I have seen reference to that quote.

Good sign that the fad has long since passed.

[Occam Bandage]

6. "I was writing my blog, and I accidentally the whole headline. Is this bad?"

[ErinBerin84]

3. I loved how

a couple weeks ago, when asked about the Santelli "rant", he said that if you mentioned a bubble on CNBC before September, you were called a Bubble Head.

[Occam Bandage]

4. Sup dawg, I herd u liked credit default swaps,

so we put a collateralized debt obligation in yo mortgage-backed securities portfolio so u can create undue risk while u create undue risk.

[camera obscura]

10. Win.

[Extend a Hand]

5. lol, that's funny but xkcd

still holds the 'meme density' record with this...

http://xkcd.com/550/

[Occam Bandage]

7. How is bubble formed? How is bubble formed? How economy get recession?

They need to do way instain markets> who swap thier derivitives. becuse these derivitives cant display risk?
it was on the news this mroing a bank in ny who had lost its three bilions. they are showing the three bilions back in new york too lady to rest my pary are with the investers who lost his investmints ; i am truley sorry for your lots.

[thereismore]

8. I can understand propping up banks. I do not understand putting money into an insurance

company that will just dish it out to those who lost bets.

[Kurt_and_Hunter]

9. ...