I had posted a slideshow back in February (here) explaining the subprime mortgage mess. AIG is in trouble mainly because it insured many of the securities that these mortgages were resold under.
"But the Security was insured. What about the insurers?"
"Are you kidding? There is no way they have enough money set aside to cover this mess. They fucked up."
Click on the slides above to view the full slideshow and to review how we got here in the first place.
The Subprime Mess Explained (SubPrime Primer) - 28 Feb 2008
*** Video: Real Estate Prices illustrated via a Roller Coaster Ride *** - 06 Apr 07
Interest Only - Worse than Renting - 06 Dec 07
*** Mortgage 'Rate-Freeze' Does Not Delay Loan Reset *** - 08 Dec 07