AIG99

AIG's Speculative CDS Bets

Felix, did AIG steal your girlfriend in high school or something? Seems to me the main point of disputation with the WSJ story is that the amount has been accounted for all along, not "earth shattering new settlement obligations" as the WSJ implied.

AIG was beyond stupid to have killed themselves off via CDS exposure (and purely speculative CDS plays should be illegal....period), but if you believe the company needs to be sold in pieces to pay off the debt -- it's hardly helpful for financial journalism to run their weekly "another reason AIG is evil" stories.

Why I Bought AIG Last Week

"...the sale of the company’s asset management unit, would likely improve risk management and allow what is left of AIG to focus on writing profitable insurance in its remaining domestic markets. "

The asset management unit *is* profitable, and is not the unit that exposed the entire company to this debacle. It has not been a drag on risk management, nor had it deterred the insurance divisions from being very profitable.

As Credit Lines Dry Up, Homeowners in Withdrawal

I get (and agree) that you are anti-consumer debt, and that lenders need to adjust HELOCs down where equity deteriorates - but it is somewhat ridiculous that some lenders exploit the situation where a particular customers fundamentals have not changed (e.g. BOA credit card rate spikes)