BOOM!!! BREAKING: AIG Debt Rating Cut By Fitch

[QUESTINY]

BOOM!!! BREAKING: AIG Debt Rating Cut By Fitch, Financial Markets On The Edge
AIG Debt Rating Cut By Fitch, Financial Markets On The Edge

Monday, 15 September 2008 22:37:08 GMT


Written by John Kicklighter, Currency Strategist
Fitch rating agency has pushed AIG one step closer to the edge. One of the top three debt rating firms, Fitch lowered AIG's rating from AA- to A and left the insurer on watch for further reductions. While this was a modest step, it has been amplified by the AIG's demand for $40 billion in capital to bridge outstanding loans. Should the rating firms downgrade AIG, the resulting sell off in assets to meet credit reserves may out burn through even a massive liquidity injection like the one its asking for. Should the firm be allowed to fail, the consequences could be far worse than the reaction to the Lehman Bankruptcy and the dollar and carry trade will take the brunt of the pain in the currency market.

http://www.cddc.vt.edu/host/atomic/images/truckeeb.jpg

[Zarathustra]

Q,

I agree, and it was hilarious to watch the mainstream business news "spinsters" try to convince their viewers this afternoon that the "worst was over".

[QUESTINY]

Q,

I agree, and it was hilarious to watch the mainstream business news "spinsters" try to convince their viewers this afternoon that the "worst was over".

I keep hearing, "are we at the bottom yet?" "this must be the bottom."

[leviathan]

The PIT is bottomless.
L E V I A T H A N

[Dantheman62]

Hey Q, thanks for the message and whats next? Citigroup? I'm glad I sold everything when the market was 13,500, I wish I would've kept my gold panda coins tho!

[Mizar]

Questiny;
Thanks for the post
Aig will be toast tomorrow, another domino falling, Wachovia will be on teh deathwatch next.
M (aka Pirate eye)

[clarkkent]

i just bought 200 dollars more in silver today for a total of 1000, almost everyplace in NY is sold out or selling at double the spot price...its coming, keep a level head.

[Zarathustra]

[QUOTE=QUESTINY;14040]I keep hearing, "are we at the bottom yet?" "this must be the bottom."[/QUOTE

good observation,

I'm confused by FOX, CNN, et alia. According to them, nearly everyday for the last year has been a bottom. HMM.

[QUESTINY]

i just bought 200 dollars more in silver today for a total of 1000, almost everyplace in NY is sold out or selling at double the spot price...its coming, keep a level head.

The spot price only reflects the ETF side of Gold and Silver. Physical Gold and Silver has a totally different value.

[clarkkent]

well shops usually sell individual one ounce coins at a couple bucks above spot price, so when spot was $16 i bought it for $18 when it dropped to $11 bucks i bought some for $15 per , it depends on the dealer.

[JSErwine]

I'm no finance expert, but this seams like a snowball thats just starting to roll down hill. The consumer has not even fealt the ripple effect yet, am I wrong?

I know if this AIG thing go's completely sour, it will effect the industry I work in greatly.

[Anchor]

i just bought 200 dollars more in silver today for a total of 1000, almost everyplace in NY is sold out or selling at double the spot price...its coming, keep a level head.

Be really careful if you are not walking out the shop with the silver.

I bought some bars 4 weeks ago at AUD 578 per Kg and it still hasnt been delivered.

Gold is plentiful here, silver - very low physical stocks.

A..

[QUESTINY]

Be really careful if you are not walking out the shop with the silver.

I bought some bars 4 weeks ago at AUD 950 per Kg and it still hasnt been delivered.

Gold is plentiful here, silver - very low physical stocks.

A..

You need to call the shop and ask for an ETA on the Silver.

[QUESTINY]

I'm no finance expert, but this seams like a snowball thats just starting to roll down hill. The consumer has not even fealt the ripple effect yet, am I wrong?

I know if this AIG thing go's completely sour, it will effect the industry I work in greatly.

It is important that AIG stay solvent because they are one of the very very few who will insure large company transactions for international trade. We may see the shipping industry hit hard if AIG goes under. Also Consumer goods sent from China and elsewhere. These transactions are insured through AIG for guaranteed deliveries. This company handles all the big businesses. We may not get our TV's next year or our Toyota's?

[Zarathustra]

It is important that AIG stay solvent because they are one of the very very few who will insure large company transactions for international trade. We may see the shipping industry hit hard if AIG goes under. Also Consumer goods sent from China and elsewhere. These transactions are insured through AIG for guaranteed deliveries. This company handles all the big businesses. We may not get our TV's next year or our Toyota's?


If I'm not mistaken AIG purchased the port that Dubai was going to purchase before that deal was made public and rejected. Any knowledge of that?

[QUESTINY]

If I'm not mistaken AIG purchased the port that Dubai was going to purchase before that deal was made public and rejected. Any knowledge of that?

There was more than one port. There were at least 6 and as many as 8. They were still purchased by Dubai from a Shell company out of London. If AIG goes under then this information my be revealed accidentally and then things will really get ugly with the American people.

[Zarathustra]

There was more than one port. There were at least 6 and as many as 8. They were still purchased by Dubai from a Shell company out of London. If AIG goes under then this information my be revealed accidentally and then things will really get ugly with the American people.


Thanks,

I knew there was a connection there. Do you see an immediate Federal takeover to try and keep that under wraps if AIG takes a dirt nap?

[QUESTINY]

Yes, that and many others. But it won't work because the debacle is bigger than the dirty secrets. Lets hope nothing happens to JP Morgan Chase.

[Zarathustra]

Yes, that and many others. But it won't work because the debacle is bigger than the dirty secrets. Lets hope nothing happens to JP Morgan Chase.


I agree that it won't stay hidden, investors are losing billions, not to mention the Americans footing the bill, people are going to "out for blood".

[John aka#404]

[Mod Hat off]

I love reading these dialogs folks. Keep it up... very informative.

(insert the above to the other current ones going on) :)

-John aka#404