I've never typed a number that big. $85 billion, that's the bailout amount the US Feds are rumoured to be giving American International Group. AIG will have to turn over 80% of it's assets. Management will be gone, replaced by new overseers. I understand the need for this, but cannot help but shake my head. I realized that the entire world financial situation would change over night, should they fail. I understand that the insurance market is not remotely big enough to absorb their books of business. I understand it would be an insurer's market, cherry picking the cream of the crop, charging whatever they wanted. I understand the potential domino effect. I understand that the tangled web of what is owed to whom, who actually owns what and who's going to pay for it all would take years to sort out. I understand all this and hope that this serves as a lesson and these tentacles that spread out, overlap and interweave are cut clean and not allowed to grow back!
*I am no financial expert by any means, this is all just my opinion. I am absolutely fascinated by this entire train wreck and just can't stop watching... and shaking my head while having a slightly sick feeling!*
4 comments:
I still think I should offer to turn over 80% of my assets for $85 billion....remember my laptop cursor is a banana that peels itself... it would be an offer the Federal Reserve couldn't refuse...
xoxo
M
I'm holding out for $87 billion as you can see by my Facebook status! Sadly, not having a self peeling banana cursor, I haven't much hope!
I'll lend you mine for $89 billion
:P
If I had $89 billion I wouldn't need the $87 billion! sheesh...
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