Posted by guest , Oct 30, 2008 5:45PM

too opening bell, didnt closing bell

Posted by guest , Oct 30, 2008 6:10PM

@4...fucking too much of my fucking money!

-- Taxpayer

Posted by guest , Oct 30, 2008 6:21PM

with out gov backing of AIG we would all be fucked... especially the Euros pretty much all the big banks the have CDSs with AIG and if AIG goes under the will too. Systemic risk is to high to allow them to fail.

~M

Posted by guest , Oct 30, 2008 6:24PM

When will people start holding Eliot Spitzer accountable for his role in this AIG debacle? It was his thugs, don't forget, that forced Hank Greenberg out in the first place. Greenberg's successors then presided over the collapse of the institution Greenberg built.

Funny what happens when politicians start acting like they know how to run companies better than their own boards...

Posted by guest , Oct 30, 2008 7:05PM

Fucking kill AIG already and get it over with. At this rate it'll swallow as much money as it would cost to bail out everyone with exposure and it will still fail.

Posted by guest , Oct 30, 2008 7:32PM

If you don't save AIG there might as well be no bailout. The Euro banks use Basel II and have huge leverage. Average leverage for US IBanks (who also use Basel II, Regular banks still use Basel I in the states) was 30x at peak and they failed. UBS has had as much as 60x, other Euro banks had alot aswell. They are at a high risk of insolvency. Euro bank failure would in the end fuck over the US and thus make a bailout a waste of money.

We will not see inflation anytime soon because the velocity of money is so low. In the end the inflation we will see is the lesser evil of allowing allowing bank failure and continuing the "credit freeze"

~M

Posted by guest , Oct 30, 2008 8:00PM

@8 dollar is actually getting strong vs. the euro since this summer, but that's for playing. Also, not sure how loans to AIG causes the price of oil to go from $50 to $500 since the 126b did not invoke an expansion of money.

Posted by guest , Oct 30, 2008 8:37PM

A laid off Lehman or a canine...is there really a difference?

Posted by guest , Oct 30, 2008 9:20PM

Where are the yahoo boys - either 11 and 12 actually know what they are talking about or the shamwow has rubbed off on someone.

Posted by guest , Oct 30, 2008 9:36PM

@6 and 10:

I generally agree with the facts you present and your analysis, but I reach another conclusion. Thing is we are fucked. Throwing government money at problems doesn't make them go away, just makes the required adjustment slower and more costly. Losses are losses. They may not yet be realized, but in the end they will be. Better to get the fucking over with (major recession) then let it drag out for decades. Yes we are (the whole world) Japan. Government involvement will only undermine free markets and capitalism in favor of socialism.

Posted by guest , Oct 30, 2008 9:49PM

Any predictions on which bank that Ass Clown Schumer will next cause a run on? I'm guessing any bank that hasn't politically contributed enough to his liking.

Posted by guest , Oct 30, 2008 10:08PM

@6/10/14 (all different I know)

Why cares about Europe? They should have accounted for counter party risk before they found the dumbest people in the room to buy insurance policies from to arb the regulation put in place to protect bankers from themselves.

The whole system is going to fail (eventually) and AIG (which is really not even a US company) doesn't deserve taxpayer money. Liquidate the bitch and move on. I can understand Fannie and Freddie, and even could understand supporting GS (they are fine now and worth at least $40), but AIG must fail.

Everyone takes a bath, and life goes on. Real companies will still sell their widgets and real investors will still make a profit. It will be hard, but when you find yourself in a hole it doesn't make a whole lot of sense to keep digging.

The bloodbath will illuminate the lack of capital that has been retained by the US system but this is going to happen sooner or later anyways.

China, who hold the keys, will rescue us and we will take our place with the rest of Europe as a has been, still relevant country. It isn't ideal, but at least we have a lot of new, shiny appliances to enjoy until we innovate our way out of this mess (or we can just sell SoCal).

Posted by guest , Oct 30, 2008 10:11PM

BAC is going to reduce the PP of MER.

It doesn't take a rocket scientist, although they apparently are good at allocating TARP funds at 50% off.

It's like getting to the moon on 200% of projected cost only in reverse.

Posted by guest , Oct 30, 2008 10:14PM

@12.. Laid off Lehman gets to collect an unemployment check.

Posted by guest , Oct 31, 2008 12:08AM

@16, China holds the keys? They bought those fed bonds to keep their currency pegged low, and they have to keep buying them or else their export-driven economy will go to shit.

Posted by guest , Oct 31, 2008 12:39AM

It's an absolute joke for the Chinese to keep their currency so cheap. They are gunna have to accept that their currency must appreciate against the dollar. Nothing can keep the the market forces at bay in the long run.

If you look at China's GDP...
Investment is at unsustainable percentage levels of GDP and to be slowed. By allowing an increase in the value of the Yaun then consumption will increase. Then growth will go to a more sustainable level.

I think you will find even with an increase in the Yaun there will still be a healthy demand for Chinese goods.

~M

Posted by guest , Oct 31, 2008 7:20AM

We need to socialize the losses and privatize the gains. I think Jesus would have wanted that.

Posted by guest , Oct 31, 2008 7:53AM

For those not paying attention, AIG used the Fed's commercial paper facility to pay down part of their extortionist rate loan. Since that didn't exist when they first took the loan from the Fed, why not?

Posted by guest , Oct 31, 2008 8:22AM

How come AIG doesnt provide any people to comment on all this? And more interetsing, the press/blogs/etc dont go looking for laid-off AIGers to talk to to figure out what happened?

If McCain or Obama so much as sneezes unexpectedly theres an hour of TV time devoted to what it means. Doesnt any reporter/blogger/paper care enough or smart enough to go looking for a story?

maybe AIG owns all of them.