Posted on 03/02/2009 1:54:32 PM PST by patriotmediaa
S&P 500 sinks below 700 in Wall St AIG fallout pushes Dow under 7,000
U.S. stocks slid to 12-year lows on Monday as a record $61.7 billion loss for AIG and another government bailout for the insurer heightened concerns about the extent of damage to the financial system. *
The stocks of companies that have found themselves on the wrong side of President Barack Obama's proposed budget fell again, as biotechs dropped for the fourth straight session. * The Dow Jones industrial average .DJI slid 299.64 points, or 4.24 percent, to end unofficially at 6,763.29. The Standard & Poor's 500 Index .SPX fell 34.27 points, or 4.66 percent, to finish unofficially at 700.82. The Nasdaq Composite Index .IXIC lost 54.99 points, or 3.99 percent, to close unofficially at 1,322.85.
(Excerpt) Read more at reuters.com ...
That is a shame ... I lost my 401K last year .... thanks Citi
Mr. Liddy took a somewhat defiant tone, suggesting the new bailout money wasn’t strictly necessary and that A.I.G.’s mammoth loss was a essentially sign of the times.
“I can’t emphasize enough; we need no new cash right now,” Mr. Liddy said on the call, describing the new $30 billion in funding, in the form of an expanded government credit line, as a “backup facility” intended to “enhance the restructuring we are working on.”
He also said the $61 billion fourth-quarter loss “does not reflect the fundamentals of our major businesses.” Instead, Mr. Liddy stated, “the results primarily reflect noncash charges associated with the restructuring of our balance sheet and the severe market disruption that is occurring around the globe.”
Mr. Liddy also tried to put his company’s bailout in a global context: He said A.I.G. was acting as sort of conduit to funnel money from the government to dozens of financial institutions around the world. A.I.G. had guaranteed about $300 billion in complex derivatives, many of which have gone sour, forcing it to raise capital.
The government feared that if A.I.G. became unable to pay claims, it would have sent shock waves throughout the financial world, causing many bank failures.
“The government believes, and we do also, that A.I.G. is a systemically important financial institution,” Mr. Liddy said on Monday’s call. “There are just too many people and too many institutions that depend on the promise represented by an A.I.G. commitment.”
Is this legit? Does the NEA have a lot of money in AIG?
I heard it was because Congress and their retirement system has a lot of money in AIG that has caused this turkey to stay allive.
The teacher's 401(k) assets are suffering from the consequences of a stock market that has shed 3,000 pts since inauguration day and 7,000 points since 2007. In other words, there is enough blame to go around.
The government’s newly overhauled rescue package for AIG is $162.5 billion, according to government officials. Divide that by 111,609,629 — the total number of U.S. households, according to the U.S. Census’ 2005-2007 American Community Survey — and the result is $1,455.97. That’s nearly double the maximum tax benefit U.S. couples will receive under the federal stimulus package approved last month.
Down 299.64 sounds better than being down 300, doesn’t it? Thanks, Obama!/s
Starting with the Congressional pension and benefit plans.
Yeah, my 401(k) and IRA are pretty much toast by now, too. Why should I feel sorry for the teachers?
Which teacher’s union? The teachers in cal are in CALSTRS. Most of them who supplement are in 403b.
True, teachers don’t usually ahve 401(k) plans....
video about aig and 401k teacher union)http://www.cnbc.com/id/29465061
The money could be in these funds anyway. Most of CalSTRS and 403bs are stocks are they not?
no
I’m leaving Maine to move to NH; no state income tax.
I am familiar with the options to Cal public employees. They come though the state Savings Plus program. It was my recollection that most of them are mutual funds (groups of stocks) and stocks. Please enlighten me and tell me where the money is really invested.
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