Despite a $85bn loan, AIG may need more money (insurance, credit, debt)

[paperhouse]

UPDATE: AIG CEO: May Need More Money From Government Credit Line (broken link)

They need another bailout. When they talk about the derivatives that they're having to pay down, here's an article with Warren Buffett discussing this.

Wall Street didn't listen to Buffett. Derivatives grew into a massive bubble, from about $100 trillion to $516 trillion by 2007. The new derivatives bubble was fueled by five key economic and political trends:

1.
Sarbanes-Oxley increased corporate disclosures and government oversight
2.
Federal Reserve's cheap money policies created the subprime-housing boom
3.
War budgets burdened the U.S. Treasury and future entitlements programs
4.
Trade deficits with China and others destroyed the value of the U.S. dollar
5.
Oil and commodity rich nations demanding equity payments rather than debt

http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid={B9E54A5D-4796-4D0D-AC9E-D9124B59D436}

[ViewFromThePeak]

Originally Posted by paperhouse

UPDATE: AIG CEO: May Need More Money From Government Credit Line (broken link)

They need another bailout. When they talk about the derivatives that they're having to pay down, here's an article with Warren Buffett discussing this.


http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid={B9E54A5D-4796-4D0D-AC9E-D9124B59D436}

That huge party by AIG's subsidiary probably was expensive.

I'd party too if the taxpayer was bailout out my business.

[floridasandy]

of course AIG needs more money:
Remember how, just last month, AIG teetered on the brink of financial apocalypse? The effects of the insurance giant's imminent collapse were deemed so dire that the Federal Reserve galloped to the rescue with $85 billion of your (and my) tax dollars. What a difference two weeks make. With its parent company safe (for now), execs at one of AIG's subsidiaries have descended on the St. Regis Monarch Beach Resort (ocean-view rooms -- just $565 per night!) for a little celebration. The OC Register's excellent blog, the OC Watchdog, has the details:

On Friday, before the presidential debate got under way, caterers for the St. Regis were setting up dozens of tables on the grounds of Mission San Juan Capistrano for AIG American General’s sumptuous offsite dinner. Tables were draped with soft Tuscan-gold tablecloths that cascaded to the grass; elegant fresh flower centerpiece graced each table; and what appeared to be fine crystal stemware, at least from a distance, glistened in the fading light.

[carlitasway]

Surprise, surprise

[HappyTexan]

If our government really wants to bail out everyone then they need to toss about $20 trillion into the markets.