AIG Downgraded! Terrible news

[Bubblesitter]

Warren Buffet called derivatives “Weapons of mass destruction”. The outstanding AIG Credit Default Swaps that may be called in next few days could trigger a financial system meltdown. This is potential “world turned upside down” scenario.

God I hope I’m wrong

The Lehman, Merril Lynch, AIG employees and most of Wall Street probably feel that the world has already “turned upside down”

http://piggington.com/world_turned_upside_down

[Bubblesitter]

Any Derivative Traders out there that can comment?

AIG is on the cusp of full acceleration of their swaps. On CNBC, Carlos Mendez of ICP capital is saying that Asia big institutions are already trading as if AIG is already bankrupt, the calling the swaps. $75 Billion that the Fed, and big institutions are trying to raise is no where near enough to cover this.

If you don’t want ot listen to the whole CNBC clip, start at around 8 minutes

http://www.cnbc.com/id/15840232?video=857301616&play=1

[Bubblesitter]

Any Derivative Traders out there that can comment?

AIG is on the cusp of full acceleration of their swaps. On CNBC, Carlos Mendez of ICP capital is saying that Asia big institutions are already trading as if AIG is already bankrupt, the calling the swaps. $75 Billion that the Fed, and big institutions are trying to raise is no where near enough to cover this.

If you don’t want ot listen to the whole CNBC clip, start at around 8 minutes

http://www.cnbc.com/id/15840232?video=857301616&play=1

[Bubblesitter]

Any Derivative Traders out there that can comment?

AIG is on the cusp of full acceleration of their swaps. On CNBC, Carlos Mendez of ICP capital is saying that Asia big institutions are already trading as if AIG is already bankrupt, the calling the swaps. $75 Billion that the Fed, and big institutions are trying to raise is no where near enough to cover this.

If you don’t want ot listen to the whole CNBC clip, start at around 8 minutes

http://www.cnbc.com/id/15840232?video=857301616&play=1

[Bubblesitter]

Any Derivative Traders out there that can comment?

AIG is on the cusp of full acceleration of their swaps. On CNBC, Carlos Mendez of ICP capital is saying that Asia big institutions are already trading as if AIG is already bankrupt, the calling the swaps. $75 Billion that the Fed, and big institutions are trying to raise is no where near enough to cover this.

If you don’t want ot listen to the whole CNBC clip, start at around 8 minutes

http://www.cnbc.com/id/15840232?video=857301616&play=1

[Bubblesitter]

Any Derivative Traders out there that can comment?

AIG is on the cusp of full acceleration of their swaps. On CNBC, Carlos Mendez of ICP capital is saying that Asia big institutions are already trading as if AIG is already bankrupt, the calling the swaps. $75 Billion that the Fed, and big institutions are trying to raise is no where near enough to cover this.

If you don’t want ot listen to the whole CNBC clip, start at around 8 minutes

http://www.cnbc.com/id/15840232?video=857301616&play=1

[davelj]

As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.

[davelj]

As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.

[davelj]

As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.

[davelj]

As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.

[davelj]

As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.

[jficquette]

[quote=davelj]As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.[/quote]

I agree however they did do the Bear Sterns deal over a 3 day weekend.

John

[jficquette]

[quote=davelj]As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.[/quote]

I agree however they did do the Bear Sterns deal over a 3 day weekend.

John

[jficquette]

[quote=davelj]As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.[/quote]

I agree however they did do the Bear Sterns deal over a 3 day weekend.

John

[jficquette]

[quote=davelj]As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.

The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.[/quote]

I agree however they did do the Bear Sterns deal over a 3 day weekend.

John

[Author]

Posts