RSAAKS

Why Has AIG's Stock Risen So Rapidly?

Listening to Mr. Liddy before congressional committee last night, the message was that he plans to unwind all CDS's (all valued at 2.4 trillion on their books). Of theis $2.4 T, about half has been unwound (and I assume that is where $100B loss reported came from. Assuming the rest gets unwound in a year or so with a similar loss, total loss will be $200B. Add to that $78B they have already borrowed from the feds. To pay for all this, they plan to sell the healthy businesses and end the company. Unless those busineeses generate a lot more than $278B, where is the value for common shares? and what is your basis for listing AIG as undervalued by 35% or so (shown on your chart?

Bank Execs' Proposed Salary Limits: No Sympathy Here

A comment posted asks "How will you feel when they decide to limit your pay?" Well, Mr payoff, every time our profits go down, my pay goes down. Every time my profits go up, the pay goes up. Can we apply that rule to the bankers and wall street? Would that be so unfair??