On June 20, 2007, I predicted that Volkswagen stock would be a great investment. It turns out that it was the best performing large cap stock in 2008. http://news.morningstar.com/quarterendnet/Performance.aspx?page=bestWorstStock&docid=268320The stock price peaked in October of 2008 and has since come back to a level which makes it a buy again at these valuations.
Those foreign banks bet that AIG would be around. They should have been wrong about that and lost their insurance premiums on derivatives contracts they entered into with AIG. The US taxpayer should not be expected to make AIG counterparties whole.
Why should taxpayers buy assets of very questionable value? They shouldn't. Banks will not lend more than they currently are because there aren't enought qualified borrowers in this economy.
Prof. James Galbraith (son of John Kennith) knows what he is talking about. I think he is right.
Sometimes, students of the political scene also need to watch t.v. programs which are ordinarily considered important parts of popular culture.
