Did AIG get F'ed by CDS's on CDOs?

...FOTA thinks so.

(H/t CJR)

Here's the quote that almost makes sense:

A bear on CDSs [Credit Default Swaps] might not be an outright bull. Might be more like a slowly grazing cow, mooing, “Hey, c’mon, things aren’t as bad what the mark-to-market losses would have you believe.”