If the fed is taking all the junk on their books, then all the insurance sold by Aig on said junk is no longer in trouble. Also they still keep all the premiums paid to them so... AIG should go right back and hit 52 week high? lol
Some rough math... 85B 300M tax payers =$283 a citizen. About a fair premium for a national healthcare plan... merge in social security and we now can provide every citizen health, life and retirement. AIG-SS becomes: America's Insurance Guaranteed Social Security. Lets fix all the problems in one shot
Awesome, but only if I get to live in one of those soviet developments. They look like housing projects. Giant buildings all rooms exactly the same, I cant wait!
Read news headline (HK Dow Jones newswire) lots of policy holders are cancelling their insurance anyway. The problem is that now that AIG is being forced to spin off units to raise cash, those independent units may end up with different credit ratings than the parent company. And once sold off, they're no longer able to access the Fed's credit line. Or shouldn't be. Maybe AIG could guarantee a credit line to a buyer from their own Fed credit line, dunno. Anyway, in which units do you think buyers will be most interested: a) healthy, profitable, well managed b) laden with whatever risk caused their current crisis Hmmm... Now what units would that leave AIG (and their new owners, the Fed)? I know they can borrow whatever they want to cover their insurance payouts, but that's still debt on the balance sheet. Of course I'm all ears to anyone who thinks AIG is a steal at $2.35...
Mass insurance canceling? Lol I don't think so. Laden with risk? Um... seen the news recently? Tax payer is going to eat that risk. Buffet/Germans are now looking at this steal, if you and others don't see 2.35 as one that is ok, there are others who think it is a joke at this point.
Like I said, it was a newswire headline from Hong Kong. Yeah, recent news looks like everyone is getting a bail out, but AIG still looks like a crap shoot at this point.
Creating more government bureacracy in no way solves anything. Nationalizing health care will do nothing to help people afford the care they need. Watch and see. Yeah I know libbies, you too. Shut up and wait.
Breaking news on WSJ.............. AIG shareholders pursuing plan to pay off govt loan before they take 80% stake