[JerseyHighlander]

Please don't panic after reading this...

Here is some commentary from talking heads with a better grasp of the situation:

http://optionarmageddon.ml-implode.com/2009/03/11/insurance-guarantee-funds-another-mirage/

"if a bank goes bust, its depositors are protected (at least theoretically) by FDIC…….is there a safety net for insurance policy-holders? Well, kind of. Each state has its own insurance “guarantee fund,” a private consortium of insurers operating in the state who agree to fund certain policy-holder’s losses should one of their brethren turn up insolvent. Here is a list of all the guarantee funds, including their insurance limits and contact information.

But here’s the kicker: None of these guarantee funds actually have any funds. There’s no pot of money for a rainy day. No, state insurance guarantee schemes are “post-funded.” Bailout cash is raised AFTER an insurer fails."

http://www.calculatedriskblog.com/2009/03/strictly-confidential-aig-document.html

"AIG operates in more than 140 countries around the world, whose customers, regulators, and governments have thus far been refrained from liquidating or seizing assets based largely on the support given to AIG by the U.S. government."

"They mention how many have pension plans with them. Then they mention that many current retirees may receive their main income from them. But they don't mention how many current retirees there are. This sort of nonsense runs right through the document. Did they leave in this sort of spin to better deceive the public? Make it look like it really is for "your eyes only"? My guess is no. I'm not that kind of cynical. I'm the kind of cynical that thinks these morons are actually stupid enough to put into print claims that an AIG failure could dwarf Lehmans in collateral damage to the world economy. They should have done like Tony Soprano and kept it all verbal."

[JerseyHighlander]

http://optionarmageddon.ml-implode.com/2009/03/11/insurance-guarantee-funds-another-mirage/

http://www.calculatedriskblog.com/2009/03/strictly-confidential-aig-document.html

[dennisw]

AIG.... the CDS black hole

[PGalt]

The supremacy of finance capital over all other forms of capital means the predominance of the rentier and of the financial oligarchy; it means that a small number of financially “powerful” states stand out among all the rest. The extent to which this process is going on may be judged from the statistics on emissions, i.e., the issue of all kinds of securities. - Vladimir Ilyich Lenin

We the people, our children, our grandchildren are being economically $ubjugated by our overlord$ and master$. We have become economic pawn$/peon$/involuntary $ervant$.

The $ocialization of ri$k $ociali$t$ along with the re$t of the $ociali$t$ are running the $how.

[autumnraine]

Aside from the people losing claim benefits and premiums paid, the commercial insurance industry would buckle without AIG as a Work Comp insurer. The life side alone would be enough to hurt tremendously, but the employers would be stuck. And no state has enough money to ‘guarantee’ a company the size of AIG.

[TaxRelief]

Is AIG in anyway linked to the California Workmen’s Comp fiasco? My co-worker insists that is so.

[TigerLikesRooster]

This is WMD alright.

[theBuckwheat]

I lay part of the blame for the systemic failure with the well-meaning risk avoidance taken by many companies that lead them to only accepting risks that could be insured, and ending up having AIG be the underwriter.

AIG became the risk nexus that itself was vulnerable to the rug being pulled out from under them by mark to market and FASB Rule 157. When coupled with the SEC’s elimination of the Uptick Rule, the collapse of asset values became a self-sustaining chain reaction downward.

BTW: the SEC still has not restored the Uptick Rule, and FASB is just this week reconsidering Rule 157. Each rule change was (again) only well-intentioned by learned committees of well-credentialed people, but each rule worked to make the collapse possible. And look at how reluctant each agency is to accepting that.

[ding_dong_daddy_from_dumas]

Has AIG ever disclosed where it has spent the bailout money it has already received?

Is the US government going to keep giving AIG billions every month for 1 year? 10 years? Forever?

How do you know that foreign firms and governments have not, and will not continue to dump new toxic assets into AIG?

[2harddrive]

ITS systematic risk. “It’s” is short for it is, and is not the possessive form.

[GOPJ]

But here’s the kicker: None of these guarantee funds actually have any funds. There’s no pot of money for a rainy day. No, state insurance guarantee schemes are “post-funded.” Bailout cash is raised AFTER an insurer fails."

So basically, AIG has already failed - it's just that word has not been received by those in power ...yet.

[ex-Texan]

Tip of the iceberg . . . LOL, LOL !

AIG Bailout Rescues the Undeserving !

Excerpt:

The Wall Street Journal on Friday reported that some financial institutions like Goldman Sachs and Morgan Stanley had received payouts on AIG's bailout, as well as European banks . One of the arguments AIG made for the bailout was the threat of the collapse of European banks due to their exposure.

"They were actually arbitraging their regulatory capital threshold by writing risk with Hank Greenberg," Whalen says. "The Europeans have to take responsibility for their mess."

LMAO LOL !

AIG Stock Now Selling for 39 Cents !

LMAO Again . . . Obama's bailouts are another Ponzi scheme run on the American taxpayer !

[mo]

I’m beginning to think the only way out of all this is for the states to tell the Feds “goodbye” ..and “goodluck”

Clearly Congress is so compromised their representation is backward..AIG gets a better shake than the people...

[PGalt]

They’re selling the rights to collect on our labor, like we were slaves on the auction block. They’re selling our children and grandchildren as futures contracts.

WORTH ANOTHER BUMP-TO-THE-TOP!

Thanks to all posters on this thread.