Can anyone explain what happens if AIG is allowed to go under

[Renew Deal]

all at once?

[marketcrazy1]

1. DOW 5000

all at once!!!

[Renew Deal]

4. Are you part of the "Thank God it passed" crowd?

How about a real answer?

[truedelphi]

10. Apparently they are. Glad that the BailOut swindle passed.

Some people will forever be clueless.

[marketcrazy1]

11. if AIG files BK

it would be very bad for the markets in general. what little confidence that yet exists in the insurance sector would vanish. banks with debt exposure would take huge losses and would be forced to write them down ( no fancy accounting tricks could stop it ) counter party exposure to their CDS book should be minimal as the government ( treasury ) has already "ring fenced" most of these. however the government has already "invested" over 150 billion dollars in the company and chances are most of that would be lost. if AIG goes BK it will not be pretty and could lead to multiple failures across the insurance and financial sector. ................... and, fyi I am not part of the "thank god it passed" crowd. in fact I petitioned, faxed,called and emailed my opposition vigorously!!! what did YOU do to make yourself heard?????

[Renew Deal]

12. Would it be better in the long term.?

It seems like that AIG is part of the problem. They are not really sustainable. Wouldn't it be better/cheaper long term to let them go?

[marketcrazy1]

14. recievership in some form

is probably the way this will go. but because they are an insurance company it could be tricky even so thats where i would put my money if i had to bet. to BK a company as large as AIG in this market climate is just too risky.

[Renew Deal]

15. There's another fear word..."Risky"

Bernie Sanders said that "If they're too big to fail, they're too big to exist."

Obviously it's too risky to keep them in business. If we save them now, eventually we'll have to save them again. The core problem will not be solved.

[marketcrazy1]

16. Bernie Sanders is right

to big to fail should mean to big to exist. and RISK is a fear word, the problem is that the financial "engineers" who created this mess ignored RISK in favor of reward. greed is the cause of this mess pure and simple greed!

[tama]

19. Long term?

You are talking the terminology of abomination. There is no such thing as "long term" - only short and shorter. Shrt trm. Shtstrm. The horror! The horror!

[notesdev]

21. How could it be worse for confidence

than the constant bungling, broken promises, and outright lies that pass for financial policy under either party?

[no_hypocrisy]

2. A lot of litigation and cross-litigation.

Law firms will start to re-hire the attorneys just let go.

[Renew Deal]

6. So insurance jobs will be replaced with legal jobs?

:D

[no_hypocrisy]

13. One fish is eaten by a bigger fish.1

Free market capitalism. Can't beat it for the adrenaline.

[Deja Q]

3. I have a policy. Should I drop it?

[Renew Deal]

7. Yes, if it answers the question.

[SlowDownFast]

20. Uh, only if you want to see your money again. n/t

[babylonsister]

5. Just read this @ TPM: Are We Bailing Ourselves Out?

And in answer to your question, :shrug:

http://www.talkingpointsmemo.com/archives/2009/02/are_we_bailing_ourselves_out.php

Are We Bailing Ourselves Out?
02.23.09 -- 4:49PM
By Josh Marshall

We already own 80% of AIG. Now they're coming back for more.

And more to the point, who are the counter-parties that the money is going to go to once we give it to this company that has no value at all?

[seemslikeadream]

8. ...............

[Sancho]

9. YES...my VALIC Annuities (retirement) will go away and I'll work until I'm 90!

I had NO IDEA what it mattered when VALIC became part of AIG. I hate the AIG idiots, but would also like to retire on more than PB&J.

Damn the GOP crooks!


:grr: :grr: :grr:

[madrchsod]

17. a lot of food for everyone else.....

[wimpy77]

18. the crap would hit the fan

basically all the insurance companies would go belly up.