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AIG Training Manual" rel="bookmark">Credit Default Swap Math As Explained In The AIG Training Manual

I just found the secret to under­stand­ing AIG’s finan­cials.  Just watch the video below.  Is is a MUST for Trea­sury Offi­cials so that they can fig­ure out why we are putting so much money in AIG


[flv:mtm.flv 325 255]



Posted in: AIG, Credit Crisis, Credit Default Swaps, economy, Finance, Politics, Public Policy


  1. Mez

    You always seem to sim­plify a com­pli­cated sit­u­a­tion.
    After read­ing the GM blog I thought you had peaked. I look for­ward to rid­ing in your car with out a bag on my head…

  2. Scott Kravatz

    Best expla­na­tion I’ve heard. It all makes sense. Also
    2 = 1

    a = b
    mul­ti­ply both sides by “a“
    a * a = b * a
    a * a = a^2 (a squared)
    a^2 = b * a
    sub­tract both sides by b squared
    a^2 — b^2 = b * a — b^2
    (a-b) * (a+b) = b * (a — b)
    divide both sides by (a — b)
    a + b = b
    since a = b
    b + b = b
    2 * b = b
    divide both sides by b
    2 = 1

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