Can't Fix Stupid
AIG looks to sue Goldman Sachs over losses in mortgage-backed securities that AIG insured, and then on which AIG had to pay claims when the insured securities failed. (I think the taxpayers, via AIG's bailout, played a large role in paying AIG's claims). AIG reminds me of a fat guy trying to hustle Michael Jordan in a game of H-O-R-S-E because he has one trick shot, and then claiming Jordan cheated after he gets beat and loses all his money. Goldman, other Wall Street firms and hedge funds took advantage of AIG's dimwitted, short-term thinking, where AIG collected premiums for insurance it did not reserve against because it was unregulated (and therefore AIG was under no legal obligation to reserve against it), and that it never expected it'd have to honor. The explosion in credit default swap demand should have alerted AIG to the huge problems in the mortgage market, but AIG thought it had created a new way to mint money. The guys from State College should not play financial H-O-R-S-E with the guys from Harvard and Stanford.