We dodged a bullet today

Merkhava · 09-17-2008, 05:45 AM

AIG is the largest insurer in the US with $100Bn in revenues and $1T in assets. Today it was seized by the Fed in an $85Bn buyout that makes the US government an 80% owner of the company.

Had AIG collapsed, there would have been a shockwave through the markets as other businesses whose assets are insured by AIG would have been forced to retabulate their values. This could have led to a tsunami of other bankruptcies across several industries that would likely have resulted in a 1929 style panic and global financial collapse.

Be very, very thankful that did not happen today.

But we are not yet out of danger. The dam did not fail today. However, there are still cracks in it that need to be repaired. And there are major policy shifts required in Washington DC.

The ideas and methods of those who have occupied the White House during last few years have proven to be quite harmful to the national security and financial health of this nation.

Regards,
Merkhava

09-17-2008, 05:45 AM	#1
Merkhava Avalon Senior Member Join Date: Sep 2008 Posts: 99	We dodged a bullet today AIG is the largest insurer in the US with $100Bn in revenues and $1T in assets. Today it was seized by the Fed in an $85Bn buyout that makes the US government an 80% owner of the company. Had AIG collapsed, there would have been a shockwave through the markets as other businesses whose assets are insured by AIG would have been forced to retabulate their values. This could have led to a tsunami of other bankruptcies across several industries that would likely have resulted in a 1929 style panic and global financial collapse. Be very, very thankful that did not happen today. But we are not yet out of danger. The dam did not fail today. However, there are still cracks in it that need to be repaired. And there are major policy shifts required in Washington DC. The ideas and methods of those who have occupied the White House during last few years have proven to be quite harmful to the national security and financial health of this nation. Regards, Merkhava