You continue to operate under the delusion that you can create money for yourself by directing that third parties not pay their debts. You can't. Remotely.
If AIG failed like Lehman failed, the treasury would not have been a dime richer. It would have been several trillions poorer. So would a lot of other people, probably including you, but that is neither here nor there.
One entry accounting is the essence of financial idiocy...
No, I am simply pointing out that GS failed to ensure that AIG was capable of making good on their CDS commitments. Instead, it took a federal bailout to cover AIG. That is a cold, hard fact that you are unwilling to face in your worship of the jackasses who brought us the financial meltdown in the first place.
And now you are going in circles. You first say that AIG made good on the CDS obligations, yet now say that if the fedgov had NOT intervened, AIG would NOT have been able to meet those obligations and the likes of GS could have failed. You just made my point about the failure of GS risk management for me, in your efforts to spin this.
Companies such as GS, in their zeal to increase their leverage, were on the hook to AIG for billions of dollars in CDS coverage - obligations that by any objective standard, AIG could not meet, hence the need for a federal bailout. GS only got the AIG CDS money because of a government bailout. That meant they were not properly assessing risk - it meant that whether or not they stayed in business or went out of business like Lehman was entirely up to the willingness of the goverment to perform a bailout of AIG.
And yet you have the unmitigated gall to hector me for pointing out what is obvious to ANYONE who has to deal with risk management on any level. Go stuff your pom-poms where they will do more good.