AIG To Report 60 billion loss

[dahunan]

So, we already gave them 80 billion approx... IF They go bankrupt.. how will that be repaid?

 

[sapiens74]

liquidation


taxpayers considered first in line

 

[Modelworks]

Originally posted by: dahunan
So, we already gave them 80 billion approx... IF They go bankrupt.. how will that be repaid?

monopoly money of course !

 

[Schadenfroh]

Originally posted by: MotF Bane
Let them fucking die.

QFT, this company should NEVER have been bailed out.

 

[dahunan]

Nah.. the Gov will not let those others feel the pain... some BS like that.. they will take the loss and be sure the private investors are repaid first.. you watch

"If these investors go bankrupt the harm it will have on the whole world will be unspeakable.. unseen ever in our times" << referring to those who invested in AIG etc

 

[sactoking]

Originally posted by: sapiens74
liquidation


taxpayers considered first in line

Ummm, as an equity investor, aren't we LAST in line?!?

 

[her209]

$60 Trillion worth of CDS

 

[GTKeeper]

Originally posted by: Schadenfroh

Originally posted by: MotF Bane
Let them fucking die.

QFT, this company should NEVER have been bailed out.

If that happend then all their CDSs would be triggered so that could mean GS going down, BoA going down, Citi going down all at once. If THAT happend, you would be in a payroll check line every day of the week because there would be no money to pay out.

 

[GTKeeper]

Originally posted by: her209
$60 Trillion worth of CDS

But it all zeores out! (all CDSs net to 0) So its okay!

 

[Special K]

Originally posted by: GTKeeper

Originally posted by: Schadenfroh

Originally posted by: MotF Bane
Let them fucking die.

QFT, this company should NEVER have been bailed out.

If that happend then all their CDSs would be triggered so that could mean GS going down, BoA going down, Citi going down all at once. If THAT happend, you would be in a payroll check line every day of the week because there would be no money to pay out.

Aren't there any kind of limitations in place as to how much risk these banks and insurance companies can expose themselves to regarding CDS? I thought there are state laws in place that regulate how much money worth of policies an insurance company can write vs. its assets to ensure that it is able to make good on its claims.

I take it CDS are apparently exempt from all these restrictions?

Also, I thought AIG was the primary writer of the CDS. Are GS, BoA, Citi, etc. in just as deep?

 

[dahunan]

Originally posted by: Special K

Originally posted by: GTKeeper

Originally posted by: Schadenfroh

Originally posted by: MotF Bane
Let them fucking die.

QFT, this company should NEVER have been bailed out.

If that happend then all their CDSs would be triggered so that could mean GS going down, BoA going down, Citi going down all at once. If THAT happend, you would be in a payroll check line every day of the week because there would be no money to pay out.

Aren't there any kind of limitations in place as to how much risk these banks and insurance companies can expose themselves to regarding CDS? I thought there are state laws in place that regulate how much money worth of policies an insurance company can write vs. its assets to ensure that it is able to make good on its claims.

I had heard it was 3:1 and thta Paulson and Bush changed it to 7:1??

 

[miketheidiot]

looks like we have a good candidate for nationalization here

 

[soccerballtux]

Originally posted by: GTKeeper

Originally posted by: dullard

Originally posted by: GTKeeper
Sources close to the company said the loss will be near $60 billion due to writedowns on a variety of assets including commercial real estate.
...
This is about as scary as it gets. Oh and AIG still has 500 billion dollars worth of CDS which we have no clue what percentage are 'good' or 'bad'.

AIG had the trifecta:
1) The first crash: residential mortgages. This started kicking in a year or two ago.
2) The second crash: commercial real estate. America has 6x the square footage per capita of commercial real estate compared to the next largest country (per capita). The commercial real estate market was propped up more than the residential market. It'll crash much harder, especially if the economy goes bad. This is kicking in right now.
3) The third crash: credit default swaps. I don't have a clue when this will kick in but it is a massive beast that is looming. Think multiples of the US GDP.

The CRE market hasn't fully popped yet. Plenty of meat left on SPG. But #3 eclipses ALL.

Hm what's the connection between the CRE and credit default swaps?

 

[miketheidiot]

Originally posted by: Special K

Originally posted by: GTKeeper

Originally posted by: Schadenfroh

Originally posted by: MotF Bane
Let them fucking die.

QFT, this company should NEVER have been bailed out.

If that happend then all their CDSs would be triggered so that could mean GS going down, BoA going down, Citi going down all at once. If THAT happend, you would be in a payroll check line every day of the week because there would be no money to pay out.

Aren't there any kind of limitations in place as to how much risk these banks and insurance companies can expose themselves to regarding CDS? I thought there are state laws in place that regulate how much money worth of policies an insurance company can write vs. its assets to ensure that it is able to make good on its claims.

I take it CDS are apparently exempt from all these restrictions?

Also, I thought AIG was the primary writer of the CDS. Are GS, BoA, Citi, etc. in just as deep?

by my understanding, citi and others made the cds's with aig, and i believe made some of their own with other clients.

 

[babylon5]

Our government wouldn't let them fail, we know that.

Bend over, taxpayers!!

 

[BoberFett]

Originally posted by: miketheidiot

Originally posted by: Special K

Originally posted by: GTKeeper

Originally posted by: Schadenfroh

Originally posted by: MotF Bane
Let them fucking die.

QFT, this company should NEVER have been bailed out.

If that happend then all their CDSs would be triggered so that could mean GS going down, BoA going down, Citi going down all at once. If THAT happend, you would be in a payroll check line every day of the week because there would be no money to pay out.

Aren't there any kind of limitations in place as to how much risk these banks and insurance companies can expose themselves to regarding CDS? I thought there are state laws in place that regulate how much money worth of policies an insurance company can write vs. its assets to ensure that it is able to make good on its claims.

I take it CDS are apparently exempt from all these restrictions?

Also, I thought AIG was the primary writer of the CDS. Are GS, BoA, Citi, etc. in just as deep?

by my understanding, citi and others made the cds's with aig, and i believe made some of their own with other clients.

You sound pretty unsure of yourself. "By my understanding?" "I believe?" Is that the best you can do? Aren't you the fucktard that calls other people stupid when it comes to their economic views? What a tool you are. Go back to gargling LegendKillers balls; at least that kept your mouth from spouting stupidity.

 

[miketheidiot]

Originally posted by: BoberFett

Originally posted by: miketheidiot

Originally posted by: Special K

Originally posted by: GTKeeper

Originally posted by: Schadenfroh

Originally posted by: MotF Bane
Let them fucking die.

QFT, this company should NEVER have been bailed out.

If that happend then all their CDSs would be triggered so that could mean GS going down, BoA going down, Citi going down all at once. If THAT happend, you would be in a payroll check line every day of the week because there would be no money to pay out.

Aren't there any kind of limitations in place as to how much risk these banks and insurance companies can expose themselves to regarding CDS? I thought there are state laws in place that regulate how much money worth of policies an insurance company can write vs. its assets to ensure that it is able to make good on its claims.

I take it CDS are apparently exempt from all these restrictions?

Also, I thought AIG was the primary writer of the CDS. Are GS, BoA, Citi, etc. in just as deep?

by my understanding, citi and others made the cds's with aig, and i believe made some of their own with other clients.

You sound pretty unsure of yourself. "By my understanding?" "I believe?" Is that the best you can do? Aren't you the fucktard that calls other people stupid when it comes to their economic views? What a tool you are. Go back to gargling LegendKillers balls; at least that kept your mouth from spouting stupidity.

aren't you that bitter mindless shill that has no idea what he is talking about?

i'm an economics dude, not a finance dude. All i know is that whoever is on the other end of the cds's is fucked if aig goes under, and that would be pretty much everyone. Sorry that i can't outline the specific path of cds originators and their clients.

 

[Demo24]

AIG is simply too big and too intertwined in everything to let them fail. If they weren't then I suspect they would never have been given the first massive amount of money. However as it sits if they fail then they will most likely bring down the entire economy with it as everyone that depends on their security fails in the process. You can bitch and moan all you like about the government bailing them out, fact of the matter is it's the only option we have.

Perhaps when things turn around the government can sell off this stuff and at least get some of it's money back. People seem to forget it's not just handing them cash, it's buying stuff with that money which can be used later on. Makes the current spending appear worse than it is over say 2-3 years.

 

[Fingolfin269]

This seems to be one of those issues where you have to decide, in the tune of old Kenny Rogers, know when to hold 'em and know when to fold 'em. We're already in 150 bil... what's another 60? It's kind of like how I screwed myself when I bought an Xbox 360 Arcade. Sure it was cheap but then I had to get the HDMI cable. Bah what's another $40 after paying $150. Then I needed to get a play and charge kit. Bah what's another $15-20 when I've already paid $190. Then I needed to get...

We're fucked.

**EDIT** Yes, I realize my analogy blows. Rather than edit it out I will allow continued ridicule to continue. Though I do still stand by Kenny Rogers because he is more awesome than AIG.

 

[heyheybooboo]

Originally posted by: BoberFett

You sound pretty unsure of yourself. "By my understanding?" "I believe?" Is that the best you can do? Aren't you the fucktard that calls other people stupid when it comes to their economic views? What a tool you are. Go back to gargling LegendKillers balls; at least that kept your mouth from spouting stupidity.

Vacation Time.

(waves buh-bye)

 

[sactoking]

Originally posted by: Fingolfin269
This seems to be one of those issues where you have to decide, in the tune of old Kenny Rogers, know when to hold 'em and know when to fold 'em. We're already in 150 bil... what's another 60? It's kind of like how I screwed myself when I bought an Xbox 360 Arcade. Sure it was cheap but then I had to get the HDMI cable. Bah what's another $40 after paying $150. Then I needed to get a play and charge kit. Bah what's another $15-20 when I've already paid $190. Then I needed to get...

We're fucked.

I think your analogy is backward. In your example, you sent good money after good. Many people believe sending AIG money is sending good money after bad. I believe that if your example had been:

"It's kind of like how I screwed myself when I bought an Xbox 360 Arcade. Then I got the RROD. To try to fix it I bought an HDMI cable. Bah what's another $40 after paying $150. Then I needed to get a play and charge kit to see if that helped. Bah what's another $15-20 when I've already paid $190."

Then it would be more appropriate. After all, your Xbox at least WORKED when you added those accessories. We've had no indication that AIG is a functioning company and that taxpayer money will save this company.

In a "hold 'em or fold 'em" scenario, you're still supposed to fold 'em if the bet is bad, no matter how much you already have in the pot.

 

[miketheidiot]

Originally posted by: heyheybooboo

Originally posted by: BoberFett

You sound pretty unsure of yourself. "By my understanding?" "I believe?" Is that the best you can do? Aren't you the fucktard that calls other people stupid when it comes to their economic views? What a tool you are. Go back to gargling LegendKillers balls; at least that kept your mouth from spouting stupidity.

Vacation Time.

(waves buh-bye)

nah, he won't get a vacation for this.

 

[Craig234]

# of people jailed for any part of the current financial brakdown: 0

(I'm not talking about unrelated fraud, but the irresponsible, selfish policy choices)

 

[Craig234]

Originally posted by: Modelworks
What Warren said just seems to stick in my head, If you are going to put me at risk, then I deserve to put restrictions on what you do to minimize my risk.
Banks don't want regulation and the governments involvement, then pay your own damn bills and STFU.

See the sig quote.

 

[Deleted member 4644]

Originally posted by: Special K

Originally posted by: GTKeeper

Originally posted by: Schadenfroh

Originally posted by: MotF Bane
Let them fucking die.

QFT, this company should NEVER have been bailed out.

If that happend then all their CDSs would be triggered so that could mean GS going down, BoA going down, Citi going down all at once. If THAT happend, you would be in a payroll check line every day of the week because there would be no money to pay out.

Aren't there any kind of limitations in place as to how much risk these banks and insurance companies can expose themselves to regarding CDS? I thought there are state laws in place that regulate how much money worth of policies an insurance company can write vs. its assets to ensure that it is able to make good on its claims.

I take it CDS are apparently exempt from all these restrictions?

Also, I thought AIG was the primary writer of the CDS. Are GS, BoA, Citi, etc. in just as deep?

The entire reason they called them CDS is because they are unregulated. Someone figured out that by renaming what is more or less a form of insurance, they could get around tons and tons of regulations.

Now we are screwed.