Show-me Account Talk

[ATCJeff]

Wall Street Journal announces the Fed will make a bailout loan to AIG, but structure is not yet known.

Bad newswire story. Not true

 

[ATCJeff]

Well, hopefully it is not a bailout. I didn't like the BSC deal in March.
I am a shareholder of AIG and I hoped that they would find the capital needed or a buyer. AIG opened at $1.25 this morning and at one point was over $5.00 this afternoon. Should be a another wild ride tomorrow.:nuts:

Way down in after market. Everything I'm hearing and reading says shareholders are screwed, policy holders are safe. It's changing by the minute.

 

[ATCJeff]

Gumby,

If you can hold your AIG position and DCA into firesale prices this company will be back to $80 in three years. My plan is to buy this company and many of my other financial companies all the way back up - and that day will happen sooner than most anticipate.

I don't think you will get the chance to buy anymore shares. My gut is they're trying to save the policy holders, not the shareholders.

 

[ATCJeff]

Lets examine some of the rumored possibilities for AIG:

1) Private equity backstop

According to the media, AIG needs to raise about $75-100B by tomorrow. Experts are saying this idea is pretty much dead.

2) Fed extends loans to AIG. This is a likely possibility. But how will this fix AIG? This is nothing but a bandaid.

3) Conservatorship. Well, we know how that turned out for FNM/FRE shareholders.

Now they're saying conservatorship would be illegal.

 

[Gumby]

I don't think you will get the chance to buy anymore shares. My gut is they're trying to save the policy holders, not the shareholders.

We may be screwed.

 

[poolman]

My Wifes Life Insurance Policy is through AIG.

 

[malyla]

My Wifes Life Insurance Policy is through AIG.

According to katy curic news, the life insurance is safe as that is in a protected fund. If AIG goes under, the life insurance part of AIG will be protected even as it moves to another company. Charlie Rose had some guest on that offered up a scare. It AIG folds, banks will ask for payment of loans which will cause a cascade of bank failures. The crash may be on the heels of an AIG failure. Very sobering.

Good luck. Stay safe out there.

 

[Birchtree]

Simply more irrational panic....they need to change the uptick rule back to the original and shut some of these creepy bears down that like to ruin companies by ganging up on them with short positions that are naked. That may becoming to and end real soon.

 

[JTH]

Just for fun, I bought 100 shares of AIG and took 7.9% profit :toung:

With all the extra money I made on that trade I can afford to eat at McDonalds tonight!

 

[Birchtree]

You could have bought McDonalds a few years back at $19 - it's now in the $50 zone. This could easily be a longer term position especially with gas prices due to come down.

 

[Show-me]

O'boy am I kicking myself for not buying UYG in premarket for 16 and change.

 

[fabijo]

O'boy am I kicking myself for not buying UYG in premarket for 16 and change.

Yup. You should have done it on margin, too.

 

[Birchtree]

Well margin rates are very low with the potential for rates to go lower. I think our current rates will remain stable for at least two years - gotta please all those stupid sub-primers.

 

[McDuck]

You could have bought McDonalds a few years back at $19 - it's now in the $50 zone. This could easily be a longer term position especially with gas prices due to come down.

It closed above $64 today. What caused it to go like it did in the last 5 years?

 

[Birchtree]

Greg,

I suspect better value menus and increased traffic - it's still one of the best eating deals around. I do the drive through probably at least once a month - gobble up those double fish sandwiches.

 

[ATCJeff]

It closed above $64 today. What caused it to go like it did in the last 5 years?

McDonalds is by far the best run company in the US. Forget where I heard that.

 

[Show-me]

Looking to buy some KOL for the Trad. IRA. Waiting for a better spot on the Roth, I debated with myself if I should chase UYG or wait for the run and buy SKF. Banks will fail, this is just the beginning.

 

[Show-me]

I really thought the Fed would let AIG sink, this shows that the Fed is terrified of what can happen. They are willing to let LEH fail but not BSC, FRE, FNM, and AIG. No faith in the gov. action and neither will WS when the smoke clears.

Preaching line in the sand and then loaned a massive amount to a non-primary dealer. COME ON! If this does not convince you that the Fed and Treas. are a bunch of WS whores nothing will. They are NOT looking out for us and now I believe they just blew the election. The Dems will pound this into the ground if they are smart and win the election.

 

[Show-me]

I need to bail out of the C fund and lick a wound or two. Damn IFT limits are killing me.

 

[Corepuncher]

The Dems will pound this into the ground if they are smart and win the election.

Yup. The "republicans" just bailed out Wall Street with your tax money.

Sad thing is, Dems would have done it too given how severe the ramifications are. But in the end, it's all for naught because it's all going down anyway...just buying time before the election. Too bad though...we may crash another 10% before then anyway!:laugh: