It’s beginning to feel like we’ve somehow entered a parallel universe–that staple of science fiction stories–where acceleration is the norm and everything moves at warp speed.
Thus, changes that were unimaginable even a month or so ago are now either fact or are being discussed with nary a raised eyebrow in sight. Funny what a financial tsunami will do!
It’s hard to imagine Wall Street without a single investment bank, but that is the case now.
It’s hard to imagine the change in fortunes of once seemingly impregnable financial institutions, but that is the case now.
Take the mighty American International Group, for example, which has stood the old adage on its head by making a molehill out of a mountain.
The fallout for the insurance business from the AIG debacle is serious, and this despite any number of protestations that it was the holding company that caused the meltdown, not the insurance units. You and I can acknowledge the justice of that argument. But as far as Congress and other powers-that-be are concerned, “holding company, shmolding company.”
And really, who can fault the logic behind the attitude that if I put up $123 billion to bail out your company I can call it anything I want?