The political posturing around the AIG bailout back home in the US almost makes Peruvian politicians look sincere…

Remember when former NY Attorney General Elliot Spitzer – not exactly the poster boy for ethics himself – keelhauled then-CEO Maurice “Hank” Greenberg in 2005? Here’s what Greenberg recently said about credit default swaps at AIG:

Instead of all the posturing, let AIG fail. It was just a house of cards. AIG’s business model of insuring investments only created a false illusion of security. Letting AIG fail would be a good first step to cleaning up both the financial system and ethics in business.

Bailouts and political posturing don’t change the fact that money is just a funny printed paper. Real productivity, what we contribute to society in tangible terms, and the tangible things you expect to get in return, is what matters. Just printing up more money so old guys in suits can continue to get ridiculously rich doesn’t seem like the solution to me.