Aig Bailout!@!!!!!@!#!$$#@$!@$ Partyyy

"AIG's cash squeeze is driven in large part by losses in a unit separate from its traditional insurance businesses. That financial-products unit, which has been a part of AIG for years, sold the credit-default swap contracts designed to protect investors against default in an array of assets, including subprime mortgages.

But as the housing market has crumbled, the value of those contracts has dropped sharply, driving $18 billion in losses over the past three quarters and forcing AIG to put up billions of dollars in collateral. AIG raised $20 billion earlier this year. But the ongoing demands are straining the holding company's resources. Further losses in the third quarter are increasing the tension."


http://online.wsj.com/article/SB122156561931242905.html?mod=rss_whats_news_us_business


On a serious note how much $$$$ did the financial products
units lose, talk about nickels in front of a steamroller. I wonder how much they got for the subprime swaps per 10 million, where are the swaps propellerheads?
 
The credit crisis is over. Buy anything you can, the new bull market is here.

Haha you would have to be the biggest FOOL to think the bottom is in because of this next big bailout.

Sell the rallies.
 
Former CEO Maurice ``Hank'' Greenberg said the company needs a bridge loan rather than conservatorship, which could put the company under government control.

``Why would you want to wipe out shareholders when you just need a bridge loan?'' Greenberg said in an interview. ``It doesn't make any sense.''


> if the fed gets 80% with the loan dont they still have control? Also the stock is 2 dollars , the shareholders are almost wiped out, just not completely.
 
Quote from staffpro:



enjoy this guy is such an idiot that it is sad
More...

I don't agree that he is an idiot, but he is way too old to be president, and he is definitely not the best qualified in the Republican party. Unfortunately for McCain, no responsible, and well educated, US voter can vote for McCain because of the distinct possibility that Palin would become President. Even if we are are less than thrilled with Obama, we have no reasonable choice now other than to vote for him and Biden. I think Obama will be a good President, but only time will tell. But a McCain presidency has now far too high a probability of ending in disaster.
 
Quote from ron2368:

Former CEO Maurice ``Hank'' Greenberg said the company needs a bridge loan rather than conservatorship, which could put the company under government control.

``Why would you want to wipe out shareholders when you just need a bridge loan?'' Greenberg said in an interview. ``It doesn't make any sense.''


> if the fed gets 80% with the loan dont they still have control? Also the stock is 2 dollars , the shareholders are almost wiped out, just not completely.
More...

Why? I tell you why..:) because you guys need to be punished for asking government help!!

We should have a new law that ALL companies have to stay in size that can fail!

You know, we are laughing at all those latin american countries nationalizing their companies. We are doing the EXACT same thing!
 
I understand that the Government has to bailout AIG or else we are in for one hell of a ride...However, how does bailing out AIG fix anything? Why did the market rally? There are still the same fundamental problems?

Aren't, we're creating a whole bunch of additional issues...I'm sure we have all seen what happens when excess cash is printed

The markets are completely irrational...
 
0040 GMT [Dow Jones] With Fed finalizing bridging loan to AIG, central bank "has relegated monetary policy to near irrelevance," says CMC Markets chief FX strategist Ashraf Laidi; repo purchases of $70 billion on Monday, $50 billion on Tuesday as well as a $85 billion loan for AIG would be equivalent to as many as three 25bp rate cuts, "as far market reaction and magnitude of liquidity creation are concerned in terms of Fed's historical forays." Given increasingly short duration of resultant market rallies following federal interventions, Fed "is progressively re-writing the rules and making history as the only effective way to create some type of lasting market reaction. This announcement risks further desensitizing markets at the next major intervention or buyout by the 'authorities'." While on one hand Fed is attempting to stick to rules of attaining price stability by not cutting rates, "it has broken all the rules of bailout and moral hazard. Will the Fed now take over Ford or GM?" he asks.

I'm inclined to agree.
 
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