Wednesday, 17 September 2008

AIG in Conservatorship

Phew, this is the news alright. AIG is not a US Government backed vehicle, it is a large private company, also it is owned in many US states. The US Federal Government has little legal precedent for suggesting it nationalise the group in return for $100 billion.

On the other hand, they would not do such a thing if they did not think such a thing was utterly needed. Clearly the health of the global financial system is at risk. The fight is now against a Depression, not a recession, led potentially by a real meltdown in financial services worldwide.


This is serious now, the Fed is acting like it did in 1930 and 1931 - let's hope it all works out better this time.

No point owning shares in risky/any US financial stocks now though, with shareholders likely to be wiped out....


Old BE said...

As I understand it, AIG were taking people's premiums (risks they knew quite well because they have actuaries to calculate them) and investing the cash in incredibly risky and volatile ventures. WTF were they playing at and why did the regulatory regime not force them to have decent reserves? Is the situation similar here?

Simon Fawthrop said...

The explanation I heardon Wake Up To Money was that these were warrants to the value of 80% of the comapny and the US Govt has a controlling vote. This means that the US tax payer will at least get some upside, if there is any whilst the shareholders are still taking risks.

There was also speculation that AIG will be broken up - apparently they own, amongst other things, a plane leasing company and a consultancy that specialises in helping distressed companies, now isn't that just too ironic to be true?

Steven_L said...

There seems to be a lot of different information doing the rounds on AIG. Can you clear this up for us CU?

The other day you were on about credit-default swaps in relation to AIG. The mainstream media was talking about these too. As I understand it these are on one hand used as insurance contracts by people holding various kinds of debt, and on the other hand used as bets on various credit events happening.

Is it AIG issuing these things? If not who is? And will the demise of Lehman mean that lots of people are trying to cash these hedges/bets in now? The other day you were on about what might happen if the CDS market 'unwinds'. What do you meanby 'unwind'? Is this just cityspeak for saying the bookies can't afford to pay the punters?

Anonymous said...

I have been around a long time and i have survived recessions - not all that difficult to do .

Today i am very worried because this has all the feel of something big.

I am not as financially astute as most on this blog but i can recognise big trouble when i see it.Still with National Savings!!

Nick Drew said...

Ken - nothing 'non-astute' about NS&I: tax-free, index-linked-plus, HMG credit - what's not to like ? the only surprise, to me, is how few people seem to know about them

(just MHO, of course, no investment advice here)

Anonymous said...

Safe money, but low return.

I guess that's the point :)

CityUnslicker said...

Blue Eyes - yes that is the nub of it, low risk business money put into high risk bets - just like Northern Rock.

Steven - yes that is the sum of it. Don't get carried away with the $42 trillion notional value of contracts, total liabilities in real cash are less than sub=prime. Just that the banks and insurers no longer have any money left to cover the defaults.

Anonymous said...

aaaa片, 免費聊天, 咆哮小老鼠影片分享區, 金瓶梅影片, av女優王國, 78論壇, 女同聊天室, 熟女貼圖, 1069壞朋友論壇gay, 淫蕩少女總部, 日本情色派, 平水相逢, 黑澀會美眉無名, 網路小說免費看, 999東洋成人, 免費視訊聊天, 情色電影分享區, 9k躺伯虎聊天室, 傑克論壇, 日本女星杉本彩寫真, 自拍電影免費下載, a片論壇, 情色短片試看, 素人自拍寫真, 免費成人影音, 彩虹自拍, 小魔女貼影片, 自拍裸體寫真, 禿頭俱樂部, 環球av影音城, 學生色情聊天室, 視訊美女, 辣妹情色圖, 性感卡通美女圖片, 影音, 情色照片 做愛, hilive tv , 忘年之交聊天室, 制服美女, 性感辣妹, ut 女同聊天室, 淫蕩自拍, 處女貼圖貼片區, 聊天ukiss tw, 亞亞成人館, 777成人, 秋瓷炫裸體寫真, 淫蕩天使貼圖, 十八禁成人影音, 禁地論壇, 洪爺淫蕩自拍, 秘書自拍圖片,

做愛的漫畫圖片, 情色電影分享區, 做愛ㄉ影片, 丁字褲美女寫真, 色美眉, 自拍俱樂部首頁, 日本偷自拍圖片, 色情做愛影片, 情色貼圖區, 八國聯軍情色網, 免費線上a片, 淫蕩女孩自拍, 美國a片, 都都成人站, 色情自拍, 本土自拍照片, 熊貓貼圖區, 色情影片, 5278影片網, 脫星寫真圖片, 粉喵聊天室, 金瓶梅18, sex888影片分享區, 1007視訊, 雙贏論壇, 爆爆爽a片免費看, 天堂私服論壇, 情色電影下載, 成人短片, 麗的線上情色小遊戲, 情色動畫免費下載, 日本女優, 小說論壇, 777成人區, showlive影音聊天網, 聊天室尋夢園, 義大利女星寫真集, 韓國a片, 熟女人妻援交, 0204成人, 性感內衣模特兒, 影片, 情色卡通, 85cc免費影城85cc, 本土自拍照片, 成人漫畫區, 18禁, 情人節阿性,

Anonymous said...

情色電影, aio交友愛情館, 言情小說, 愛情小說, 色情A片, 情色論壇, 色情影片, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊美女, 視訊交友, ut聊天室, 視訊聊天, 免費視訊聊天室, a片下載, av片, A漫, av dvd, av成人網, 聊天室, 成人論壇, 本土自拍, 自拍, A片, 愛情公寓, 情色, 舊情人, 情色貼圖, 情色文學, 情色交友, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 色情遊戲, 情色視訊, 情色電影, aio交友愛情館, 色情a片, 一夜情, 辣妹視訊, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊, 視訊美女, 美女視訊, 視訊交友, 視訊聊天, 免費視訊聊天室, 情人視訊網, 影音視訊聊天室, 視訊交友90739, 成人影片, 成人交友,

免費A片, 本土自拍, AV女優, 美女視訊, 情色交友, 免費AV, 色情網站, 辣妹視訊, 美女交友, 色情影片, 成人影片, 成人網站, A片,H漫, 18成人, 成人圖片, 成人漫畫, 情色網, 日本A片, 免費A片下載, 性愛, 成人交友, 嘟嘟成人網, 成人電影, 成人, 成人貼圖, 成人小說, 成人文章, 成人圖片區, 免費成人影片, 成人遊戲, 微風成人, 愛情公寓, 情色, 情色貼圖, 情色文學, 做愛, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 寄情築園小遊戲, 色情遊戲, 情色視訊,