orca

AIG: Willumstad's Hard Choice

E Nuff Sed, I have no clue where you got the leverage 11x number but suppose, for arguments sake, that it is correct, then you must have gotten it off their on-balance statements. My point was, is, and will be that they can show you anything on-balance they want you to see, but you can not see their off-balance exposure. This is the problem with a lot of the financials, so before even bothering with numbercrunching ask yourself 1 simple question: Do you trust this company? The market sure doesn't, not only with regard to stockprice but more important with regard to credit spreads. I will be crystalclear here: I hate AIG and everything it stands for (uncle Hank comes to mind, the Angelo Mozilo of the insurance world, and his sons chipped from the same wood), have hated it for years, and the day they implode will be a joyfull day.