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Thread: AIG - Will there be help, or will it end up like LEH?

  1. Default AIG - Will there be help, or will it end up like LEH?

    AIG - Will there be help, or will it end up like LEH?

    I think there will be some form of help coming to AIG. It will not end up like LEH.

    What do you think? Please feel free to share your thoughts.

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    Didn't a bunch of banks come up with some consortium of money the other day? I think it was worth about $70 billion. If AIG are so important, why don't they lend the money to them??

    I'll tell you why they won't - because this is a case of every man(bank) for himself but if things get bad for someone they hope the taxpayer will bail them out so they can all continue to make billions.

    It's a disgrace!

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    Preach it, Englishman!

    Actually, I kinda think that with AIG, the fear is derivatives more than bonds, etc. AIG is on the wrong side of a lot of hedges, but if they can't pay off, that leaves a lot of other institutions with no back stop. So the quandry here is how long can we prop up AIG, and will their model ever get better?

    I think AIG still fails or gets sold off, but not in this round. This round was Lehman and Merrill, next round (in a few months maybe) will be WAMU, AIG, and we'll see about some of the others.

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    LEH was allowed to fail so that govt. can bail out AIG. AIG is too big to fail and has to do a lot with main street crowd than with big money crowd.

    Expect a great deal of capital infusion into AIG in the coming days...maybe a bailout is in the pipeline...

  5. Default

    also is it just me or is there a domino effect. a company shares tumble down on bad earnings or what not, then it tries to raise capital....its credit ratings are then cut causing another need for more capital, which then sends its shares tumbling, which leads to more credit ratings cuts.

    if anything should be regulated, shouldn't it be these credit ratings?

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