“It should be noted that AIG wrote its derivative contracts in London.” – Commenter Thomas, at Crooked Timber

And indeed, we see a report on Bloomberg, the wire service the financial folks use to communicate with each other, that Allianz was involved in a bid for AIG two days before the crisis that led to its nationalization. Financial markets are tightly linked, and we are just starting to hear the chains rattle.

As with Russia’s neighbors, the question in the markets now has to be, “Who’s next?”