Stupidity still rules … here comes why …
- AIG … AIG’s CEO justified bonus payments by telling that otherwise “top talent” would leave the company … RIDICULOUS!
- CNBC … All day talking heads were emphasizing the 5th(!) straight up session … then market closed down … what do they do? They find it positive, […]

N.Y. Times says, that the real systemic risk in the case of a failure of AIG is:
In the United States, A.I.G. has more than 375 million policies with a face value of $19 trillion.
If policyholders lost faith in A.I.G. and rushed to cash in their policies all at once, the entire insurance industry could falter.
AUTSCH!!!
Even […]

AIG shows the way … and still CNBC breaks the news
SCANDALOUS …
American International Group Inc. said Monday that it’s evaluating “potential new alternatives” with the Federal Reserve Bank of New York to tackle the giant insurer’s problems.
“We continue to work with the Federal Reserve Bank of New York to evaluate potential new alternatives for addressing […]

Whatever you hear … the new Government deal shows only one thing …
It will be more costly and it will last longer !!!
Nothing less … Nothing more …
CNBC has it , that if AIG collapses, Goldman will face a 50(!!!) bln$ loss
AUTSCH!!!

Despite all central banks and Government MOVE now …
so far nothing helps …
WHY?
- No short sellers have to cover
- Who jumps out of the window, does not return
- No confidence still as everybody waits for implementation rather than announcements
- Earnings season started and everybody is afraid now
- Paulson said today, more bank failures to come, […]

Markets SELL OFF again …
Retest of the lows? Putting pressure on the Congress?
NO …
BUT!!! :
In the U.S. morning hours … ABC reported …
Senate Majority Leader Harry Reid, D-Nev., pressed for passage, with the alarming news that one of the country’s premier insurance companies was about to go bankrupt if the crisis was not quickly […]

EXACTLY as market tests the low …
WSJ lights up this headline …
GOVT. asks Goldman and JPMorgan to lead 70-75 bln$ lending facility for AIG …
Hank did it AGAIN … OMG
And tommorow the “surprise cut” ?

Lehman seemingly will be sold over the weekend … market cap is down to around 2,5bln$
It will be extremely interesting, who will snap them up … the list of buyers is not as short as everybody thinks …
This time … we were told today … from the “everchanging-the-rules” FED
WITHOUT financial help of the Government (read: […]