eternitus

For Insurance Companies, Is a Crisis Looming?

Jegan,
Do some research and see how different it is for the younger generations (x and especially Y). The system you helped build forced them into enormous amounts of debt (college is much more expensive than it has ever been when adjusted for incomes.... impossible for them to buy affordable homes, which bebefited boomers at the expense of first time buyers, etc.). That is the "support" that the younger generation has received. Now, look at the difference between social security 20 years ago and now... used to be something like 10+ workers for every retiree and now, when the boomers retire there will be 3. that means younger generations will have to shell out much more on a relative basis than the boomers did. Do I even need to mention the debt boomers are leaving behind? Boomers have damaged this country... good thing America is too good to ruin.

Don't worry... when you are old and out of power, we'll get you back.

Government's Best Move in 2008? Letting Lehman Fail

Agreed. It is inconceivable to me that we could extend a lifeline to a company (GM) that has lost 72 billion over the last 5 or so years and not demand any sort of change. Drives me crazy.

S&P 100 P/E Ratios: How Low Can They Go?

Yes... it appears the only good investments remaining of livestock. We will need to be able to eat when we return to the stone age.

Why AIG Was in the CDS Business

I don't think losses ever arrived. They had to post tons of collateral when their credit ratings were cut after their stock was blitzed. They didn't have the cash. Shouldn't have put themselves in that position, but it still IS highly unlikely that they'll have to payout on their super senior CDO CDS contracts.

AIG: Hardly a 'Bailout', Absolutely Necessary

Reasonable? If not for a Bear Raid, there would have been no downgrades and no capital needs. The company has $80 billion in equity and generates $8 billion a quarter in cash flow. It would have to have an $8 billion loss 10 more times to get to the same position of insolvency that FNM and FRE had. The government is expropriating long-term value from the shareholders and solidifying a hatchet-job by shorts.

Lender of last resort? Try Mobster of last resort. This is a Tony Soprano deal... the government will make $100 billion on this.

Crunching Numbers: Why I'd Buy AIG

I've done the math and I agree with the calcs. Liquidity is not an issue for this Company.... It's an insurance company with an enormous portfolio of liquid assets, plus several strong business units it can liquify .

I think it would be irresponsible for rating agencies to downgrade based on a massive short surge (where there was no news on AIG), which would cause it to destroy a bit of long-term value by posting additional collateral.

Ton of money to be made long AIG if you don't soil your pants... look for a huge short-covering rally soon.

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.

Credit Crisis Review: ARMed for Failure

Is anyone blaming the real estate cheerleaders who were telling people to buy homes whatever the cost and to get into the property market any way they could (and happily took their commission checks and ran)? You know, the folks at the NAR who published a book showing a helpless family on the cover with a home helplessly out of reach above their heads titled "Are you missing the real estate boom?" Our entire society was pushing families into houses that they couldn't afford without a second thought, until it was too late, and the real estate industry was behind it all.