AIG

[TXINSURANCE]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

This bailout is BS with the money their executive staff makes.

Let them go bankrupt.

 

[Guest]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

This bailout is BS with the money their executive staff makes.

Let them go bankrupt.

Maybe they should all get together and throw money at the national debt, imagine the possibilities.

 

[TXINSURANCE]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

Who is going to bail out my small business when I screw up?

NO ONE

This is all BS the government is broke and has NO money for this, and when does it stop?

I hear socialism knocking on our door... Ohhh wait he has a name... We won't go there but it starts with an O and ends with BAMA.

 

[Guest]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

Who is going to bail out my small business when I screw up?

NO ONE

This is all BS the government is broke and has NO money for this, and when does it stop?

I hear socialism knocking on our door... Ohhh wait he has a name... We won't go there but it starts with an O and ends with BAMA.

yes, the perfect pawn.

 

[Mr. Bill]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

Wow, that website is pretty darn interesting. As has been said before:



Oh my gosh. How old is this video? How absolutely prescient Jim Rogers is.

Watch it. It's just horrible what is happening to us.

 

[Paradigm]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

Im as Laissez Faire capitalist as they get however

These are systemic problems- Joes Hardware store can go out of business and it doesnt affect anyone but Joe and his customers who will shop a competitor from now on.

AIG however is the largest insurer in the world and if they go belluy up we go into a depression because companies like them mitigate the risks of commerce.

Insurance primarilly but not just life, auto and property. AIG literally insures bonds in the credit default swap market. If that goes down lending would immediately tighten because there would be no one to underwrite risk. That would cause great depression II and would plunge the world into a prolonged slowdown.

So while I agree in principal that it isnt right to have the federal govt bail out a private company. This is in no way a bailout

1) The government or the federal reserve is loaning 85B for 80% of the company with warrants on preferred stock to enforce the arrangement

2) Shareholders and debt holders will be severely diluted including the principal of the firm like former Chairman Greeenberg who still had extensive holdings.

3) AIG tried everything to get a private loan but they didnt wanna give up 51% to private equity because they were afraid of being broken up. They shouldve taken that deal.

4) All investment banks including Goldman will soon merge with banks because without a large depositor bank they wont be able to make money on the new wallstreet. This is the end of Glass Steagell.

5) In the end there was absolutely no choice. It had to be done. An investment bank and an insurer are two totally different animals. Lehman wasnt as tied to counterparty risk as AIG. And merrill needed BOA strength and they cant survive alone and private equity cant give them the large depositor base thye need to stay in business/

Extraordinary times call for extraordinary measures

 

[Guest]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

The more things change . . .

Wow, that website is pretty darn interesting. As has been said before:

YouTube - Jim Rogers on CNBC: ABOLISH THE FEDERAL RESERVE and Bernanke

Oh my gosh. How old is this video? How absolutely prescient Jim Rogers is.

Watch it. It's just horrible what is happening to us.

 

[Paradigm]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

The more things change . . .

We as a nation have gotten spoiled there is a business cycle

The problem is the is also an incompetence cycle

What happens in any industry is this

First- you have the innovators a fantastic new product arrives

Second- You have every company try to copy what the innovators did

Third- The field become saturated with idiots who take shortcuts and become greedy

This happens in all industries esp financial withness the annuity business, the private equity game, and health insurance as examples

This too shall pass the earth will still spin tommorow

 

[Paradigm]

Re: What are you doing with clients w/ AIG policies?

Go to this same website and just put this address at the end:forum/aig-thread7395.html#post97650

Sorry but I can't put links on my posts
Regards,

Justin

AIG will be fine

 

[SportsNut]

Re: AIG looks like it heading for BK if they can't raise 75 Billion

Im as Laissez Faire capitalist as they get however

These are systemic problems- Joes Hardware store can go out of business and it doesnt affect anyone but Joe and his customers who will shop a competitor from now on.

AIG however is the largest insurer in the world and if they go belluy up we go into a depression because companies like them mitigate the risks of commerce.

Insurance primarilly but not just life, auto and property. AIG literally insures bonds in the credit default swap market. If that goes down lending would immediately tighten because there would be no one to underwrite risk. That would cause great depression II and would plunge the world into a prolonged slowdown.

So while I agree in principal that it isnt right to have the federal govt bail out a private company. This is in no way a bailout

1) The government or the federal reserve is loaning 85B for 80% of the company with warrants on preferred stock to enforce the arrangement

2) Shareholders and debt holders will be severely diluted including the principal of the firm like former Chairman Greeenberg who still had extensive holdings.

3) AIG tried everything to get a private loan but they didnt wanna give up 51% to private equity because they were afraid of being broken up. They shouldve taken that deal.

4) All investment banks including Goldman will soon merge with banks because without a large depositor bank they wont be able to make money on the new wallstreet. This is the end of Glass Steagell.

5) In the end there was absolutely no choice. It had to be done. An investment bank and an insurer are two totally different animals. Lehman wasnt as tied to counterparty risk as AIG. And merrill needed BOA strength and they cant survive alone and private equity cant give them the large depositor base thye need to stay in business/

Extraordinary times call for extraordinary measures

Astute... and right on the proverbial button.

Those that are saying "Let it fail" really hacen't a grasp on the impact if and when that happened. I wonder what the execs of AXA are doing today... Let's ee, they hold a 5% stake in AIG shares... (or did), and they hold a 5% stake in Lehman Bros... I would venture to say that the pucker factor is completely engaged at AXA... BTW, Vanguard funds owns 3% of AIG, so Mom and Pop get trimmed the AIG takeover too.

Plain and simple is AIG were to have failed, it wouldn't be a shovel full of dirt on the grave of the economic system, but a CAT 953 front end loader full of dirt. We simply could not have AIG fail; no an option or else all out financial calamity.

There will be other fallout from this and we are certainly not out of the woods yet; it will be quite an interesting set of events to watch. Maybe more interesting if the pain were less personally due to the financial fallout.