That is the common story, but not according to several people that should know.

If you read the book "The Great Deformation", according to him AIG had state insurance rules that would have prevented a meltdown. Yes, big banks would have failed. We had banks fail in the S&L debacle and it was handled.

The storyline is that the world would have come to an end. That is the story they want the public to believe. I'm not so sure. Wall Street was the one in trouble and the big money center banks. According to several, main street would have survived, and better yet, all the crooks that run the show now would have been in a new line of work.

Stockman is not the only one, but he spells it out in gory detail like no other. The book is looooooong. And detailed. And very convincing. If you want the Cliff Notes version just listen to all the different interviews he has done over the last couple years (U-Tube). You get the story pretty well complete. His book just documents it for those who say it isn't so. Read it and I think you will come away with a different idea. We have been fleeced, and the fox was left guarding the hen house after stealing all the eggs.

I think we got sold a line and we went for it hook, line and sinker.

John

Edit:

“In The Great Deformation, David Stockman – former US congressman and budget director under Ronald Reagan – tells the story of the recent crisis, and takes direct aim at the conventional wisdom that credits government policy and Ben Bernanke with rescuing Americans from another Great Depression. In this he has made a seminal contribution. But he does much more than this. He offers a sweeping, revisionist account of US economic history from the New Deal to the present. He refutes widely held myths about the Reagan years and the demise of the Soviet Union. He covers the growth and expansion of the warfare state. He shows precisely how the Fed enriches the powerful and shelters them from free markets. He demonstrates the flimsiness of the present so-called recovery. Above all, he shows that attempts to blame our economic problems on "capitalism" are preposterous, and reveal a complete lack of understanding of how the economy has been deformed over the past several decades…Thanks to The Great Deformation, not a shred of the regime’s propaganda is left standing. This is truly the book we have been waiting for, and we owe David Stockman a great debt.”