[quote]AIG is fine. They have $500 billion in assets.[/quote]
Lehman had more in assets than that and they went down. Merrill was on the verge of going down with twice that in assets. This is all based on counterparty risk and the fact that nobody wants to be at the table with these guys.
Fed Funds rates flashed to 6% today showing 3X what the target was and based on a mad amount of distrust among banks. It’d be a miracle or a gun to the heads of banks to loan 75B to AIG.
