Saturday, October 11, 2008

AIG continues sinking

You may recall when AIG started hitting the headlines. I believe it was the weekend we entered with discussions of a bailout for Lehman, but exited the weekend with a bankrupt Lehman and Merrill gobbled up by Bank of America.

During that weekend the published rumors started flying. By Monday, Paulson hadn't intervened so NYs Governor David Paterson enabled AIG to change some accounting rules and use $20 billion of its own money to save itself.

Then AIG needed $40 billion.

Then former Goldman CEO Hank Paulson directed Banker Ben to print $85 billion to save AIG.

But according to the AP (By STEPHEN BERNARD and IEVA M. AUGSTUMS), that's not enough:

Concerns about the health of American International Group Inc. were renewed Thursday, a day after the insurance giant said it would receive an additional $37.8 billion loan from the Federal Reserve.

"The bottom line is, they need more liquidity than they thought," said Mark Lane, an analyst for William Blair & Co. The new loan is on top of a two-year, $85 billion loan AIG received last month from the Fed in an effort to stay in business.

And didn't these guys just waste $440,000 on a "getaway" to improve the business? Ha! Who do these guys think they are? Town Hall with their conferences & seminars and take-home vehicles?

Ain't fiat money great? It really does grow on trees!

Tim White

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