eternitus

AIG and the Lunacy of GAAP Reporting

AIG is being punished too much and the stock price is ridiculously low. I wouldn't be surprised if their cash losses amount to less than $5 billion, looking at the actual securities.

The thing that's holding me back from buying more shares is uncertainty over how much capital the mentally impaired rating agencies will force them to raise based on these GAAP numbers market to an inefficient, illiquid and frightened market. They've already had to dilute the heck out of investors by raising $20 billion at a low stock price.