It was May 30, 2008 and Bernard Connolly, a senior executive at the re-insurance giant AIG, had witnessed the destructive derivatives implosion that was Bear Sterns. It was a whisper topic, as derivatives mostly are. As a chief economist at an insurance giant who had issued insurance backing many of these derivatives, Connolly mostly focused on the macroeconomic picture. He has been reported not to have involvement in the AIG derivatives issues, but how could one not talk about it with fellow industry people who knew it to be the real story? It is against this economic backdrop, nearly five…
On This Page
- Risk management content warning: Sophisticated investors only past this point
- Connolly: European Monetary Union wanted to create crisis to force union
- Modern day Ponzi schemes take time to unravel
- Greece: Pay attention to how the EU monetary union was sold and how they felt about “current account balances not mattering”
- Connolly: “When the bubble bursts”
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