First off, this blog is about opinions, and you will rarely see a link to a story or another web page - that's just not fun. Also, the Deacon doesn't like to use exclamation points, but, sometimes, they get the point across.
Anyway, I can remember understanding that investments were something you did that involved risk (sometimes more than others) to make money - based on the risk - sometime early in high school. I'm guessing that most people who go into this industry do the same. I understood maybe even earlier that insurance is about protecting against risk, and that insurance companies always ran the risk of all of their accounts coming due for one reason or another at any time - which is why they look for as many safe things to insure as possible, to prepare for the possible catastrophe.
Now, I just wrote all that on the basis of common knowledge, not anything learned in a class, or in pursuit of a degree. So, what happened at AIG that their account reps made so many mistakes that they need another $30 billion to fix their problems? If I know better than to make risky investments, why didn't the people with degrees, being paid to do so, know the same?
I'm sorry, but 1 round of bailouts was bad enough. These people practiced in a free market economy, they should have to follow through with it. If it means they go out of business and people are screwed? Well, that's investment, risk, and the free market system, no one was unaware of this when it started, so allow it to end, don't save it! Jesus, please, stop giving our money to people who didn't know what they were doing, but should have!
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