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| AIG Cash Burn Rate Skyrockets: Back to the Well |
| 2008-11-08 |
| AIG is just now learning that being on the dole sux. They want a do-over with a better interest rate Now they also want the government to buy their still-falling CDSs it has on its books. According to some financial blogs, AIG wants to get this done before they report earnings Monday, after their debt gets downgraded. From TFA: AIG is also proposing the government buy the bonds underlying its troubled portfolio of credit default swaps in exchange for the roughly $30bn in collateral the company holds against the assets. Losses on the mortgage-backed assets, which were acquired by AIG with the proceeds of its securities lending programme, and the CDSs caused the company's collapse. Since the government rescue, they have continued to haunt AIG, which is required to put up extra capital every time the value of these assets falls. AIG and the Fed declined to comment. |
| Posted by:badanov |
| #9 Glenmore is right. I kinda like the sound of that. Think you could teach it to my kids? |
| Posted by: Glenmore 2008-11-08 20:31 |
| #8 It has, and will always be a "good time to be an American." This is a left-wing, moonbat, Hollywoodistan abomaly. Not at all the norm. My prediction, one way or another we'll kick this stuff off of our boots in good time. |
| Posted by: Besoeker 2008-11-08 19:38 |
| #7 Glenmore is right. Notice that the big states and the other industries are yammering for their share of Bailout Bucks. So long, capitalism, it was nice while it lasted ... |
| Posted by: Steve White 2008-11-08 17:54 |
| #6 Not a good time to be an American. It is ever a good time to be an American. |
| Posted by: .5MT 2008-11-08 15:58 |
| #5 This is going to continue to happen up to the point Obama steps in and nationalizes Wall Street and the Banks. If President Bush had a background in finance or if his Treasury Secretary were not an 'academic', or if anyone in the Congress had any actual Wall Street experience they could have stopped this debacle in its tracks long ago. Modify the mark-to-market rules allowing an 20-40-60-80-100 realization of mark to market losses to allow the firms time to work out the real value of the underlying securities. Instead, they inject capital into selected firms, hand picked by an unaccountable bureaucrat, so that those firms can buy up their competitors. It is the single most unfair way to solve the problem with the medicine having no relation to the underlying illness. Ivory Tower academics running the economy and now a socialist going to collectivize the whole thing. Not a good time to be an American. |
| Posted by: DanNY 2008-11-08 14:19 |
| #4 I'm all for it....as long as the top 200 execs promise to work for a dollar a year. (I mean, look on the bright side, guys....you'll be well under the 250k mark, so it's a huge favor to you, really!) |
| Posted by: Cornsilk Blondie 2008-11-08 11:07 |
| #3 New Management Incentive Plan - performance bonus no longer based on earnings but on amount of Bailout Bucks you can secure for the corporation. If you make you Bailout Bucks metric you will earn a big performance bonus. |
| Posted by: Glenmore 2008-11-08 09:56 |
| #2 Expect a sudden and desperate 'CRISIS' to develop if congress hesitates on the new bailout. Their fiscal health changes daily depending on their perception of their chances of sticking their greasy ham-fists into a pile of taxpayer money. |
| Posted by: bigjim-ky 2008-11-08 09:46 |
| #1 Too bad I didn't get an invitation to the feast and orgy. I could have used a bit of help, but, sigh, I didn't screw up enough to get an invitation. Like the rest of the luckless taxpayers, I just got screwed. |
| Posted by: Richard of Oregon 2008-11-08 09:12 |