ryan1234

I could be wrong... and I hope I am.. but I think the dollar might take a dive bomb by begining of next summer........ just a feeling

capncrunch

AIG up 30% to $5 a share....looking like a great call.

ToiletDuck

Not being rude I just don't know if you're making a joke or not lol. AIG, with it's "loan" from the govt is as risky as it gets right now. The rules the gov't set in place for the loan to go through are a little stiff. It seems more like a way to avoid them from going into BK while they sell off 80% of their assets overtime. Unless they can actually pay the 9%, I think that's it, that the loan was given at.

Interesting read here.

Bloomberg.com: News

capncrunch

...........................

BigFellor

I just sent letters to my Senators and my Congressman about this issue. Show me ONE thing the government has handled or can do more efficiently or more cost effectively than the private sector and/or market forces. It's time for these politicians (on BOTH sides) to stop pandering to ignorant voters and trying to buy their votes (mortgages).

I'm tired of my money being stolen from me (that would be through the magic of payroll deducted taxes) to prop up and bail out everything from crack *****s with 12 kids to incompetent consumers to businesses that fail because of incompetent leaders and stupid business decisions. LET THEM FAIL. With Uncle Sam in their back pocket, these people have no risk. Risk keeps them somewhat "honest" and has a way of bringing about better decisions. Instead, all these companies are getting with this $700 billion bail out is a blank check with a note that says, "Don't worry about being responsible lenders. Don't worry about making sound decisions. Uncle Sam and the tax payers are here whenever you need some cash!" Sorry, but if you bought a $300,000 house and you make $30,000/yr, it's not my responsibility, through the force of government, to bail your ass out. Go find a cozy bridge.

But, go ahead and scream and cry for MORE government involvement, more regulation, more oversight, bigger government. Anymore in this country, people are more concerned with making sure they have the newest cell phone and who is on Oprah today than things that matter. Why should I worry about anything? It's easier to let the government take care of me. Sad sad sad.

I should go start handing out $20's to some local homeless people. At least I have control over that. And while we are on this "my money going to bums issue", why in the hell are we giving $80 to every household in this country so they can watch TV in Feb?!?!?

capncrunch

Yes its risky but it also has the opportunity for great rewards....


Reuters
AIG shares jump 27 percent on shareholder plan report
Monday September 22, 12:21 pm ET

NEW YORK (Reuters) - Shares of American International Group Inc (NYSE:AIG - News) rose 27 percent on Monday after a report that some leading shareholders are searching for a way to keep the company from being effectively taken over by the Federal Reserve.


It was the third day of gains for the stock, which hit its all-time low last Tuesday, just before the company was bailed out by the Federal Reserve with an $85 billion loan to help it recover from massive losses it suffered on mortgage derivatives.

Under last week's deal, brokered by Treasury Secretary Henry Paulson, the Federal Reserve would take an almost 80 percent stake in the insurer, diluting the existing shareholders' ownership.

According to a report in the Wall Street Journal on Monday, citing an unnamed person familiar with the matter, major shareholders are looking for ways to quickly sell assets and raise capital to pay off the Federal Reserve loan, thereby keeping AIG independent.

It did not name any shareholders in particular, but noted that AIG investors such as Bill Miller of Legg Mason Inc (NYSE:LM - News) and former AIG director Eli Broad banded together earlier this year in their successful push to remove Martin Sullivan, chief executive of AIG.

AIG shares rose $1.04 to $4.89 on the New York Stock Exchange.

Thedude

I am glad I bought at $1.75. Just wished I could have purchased more.

Led Zep

I just finished reading BigFellor's post and not only did I enjoy it, I agree with him. I personally think he is expressing what most people are thinking but unable to voice publicly.

Our society has morphed to the point where personal and professional accountability for one's actions is almost unheard of nowadays. Is common sense becoming an endangered species? Since when is it the government's responsibility to tell someone whether or not they can or cannot afford a mortgage? Call me stupid, but I just assumed everyone had an idea of money in vs money out (a budget for those of you in Rio Linda) and thus able to tell very easily if a given home is affordable or not.

Who do I blame? Consumer and banks alike.

CONSUMER:
Mortgage contracts are not the same as rocket science. At the very least you can ask what your payments are going to be. If it's a variable interest rate then ask what the payments are going to be like under a wide spectrum of various interest rates. If the numbers scare you, THEN DON'T TAKE THE MORTGAGE until you can afford to do so. And then, only take a fixed-rate mortgage.

There is more. Some homes were appraised at ridiculous values for the sole purpose of borrowing against it. In other words, the bank's ATM wasn't giving enough money so some people decided to install one in the home. Look, if you have to borrow against your home to purchase a plasma t.v. then you fall into one of two categories: a) you have way too much home for your income, or b) you expect way too much t.v. (or other consumer must-have-now product.)

BANKS:
These guys aren't off the hook either. They, out of all people, should have known better than to issue credit to people who were at risk of defaulting on loans. 20 years ago a person with a low income and less-than-stellar credit record would have had trouble qualifying for a $5000.00 loan to purchase a used car. 5 years ago that same person could get a $250K mortgage. HUH?????? What was the purpose of credit checks? Doesn't seem like anyone paid attention to them.

Finally, I blame the government for bailing both parties out. The message being sent is that it is o.k. to take unreasonable risk because someone else will bail you out and excuse you of your actions.

I am a free market capitalist. I obviously like it when the markets do well. Understandably I am not too thrilled when they do bad. But, I understand wholeheartedly that ups and downs are all part of the game. I also understand that, left untouched, the market will take care of itself and rebound. One thing I dislike more than a downturn in the market is a socialistic attempt to nationalize that market. Just leave it alone.

Dark Knight

For every weak bank the gov't bails out of trouble there is probably one or two banks in decent standing that doesn't need a bailout.

Example AIG vs Berkshire Hathaway (they were insurance before flight safety fellas)

I've just skimmed through the thread so I won't go into detail but I will say that we are better off writing our senators and congressmen on this instead of complaining to our peers on a message board.

Let's write or call them and ask them to exercise some fiscal responsibility and not reward predatory lending and ignorant consumers. Why should my taxes be used to save the greedy and the ignorant.

This isn't what my ancestors fought for.

BigFellor

Already did. Also included a line about "Since you are so freely handing out money, I could use $20k to pay off a student loan. I'm sure I have paid more than that over the years in taxes that went to support someone else."