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Totally Unfounded Rumor Of The Day: AIG's CDS Dodge

What do you do when you are on the hook for notional CDS amounts 30-50 times the actual face value of a bunch of worthless ($0.10 on the dollar) bonds? Why, buy the bonds at 100% of face, of course. This is especially clever if you are using the taxpayer's dime. Not that we know anyone for sure who is actually doing this or anything, you understand. Just a rumor. Nothing to see here.