The Cleansing Effects of Crisis, Part II: The Horror of AIG
Citigroup looks like it is going to break below $1 per share. It’s time for Citigroup to be nationalized. it’s not Pandit’s fault but I don’t see how he can keep his job with the stock in free fall. Can Citi lure any other highly successful competent executive to take this job right now?
AIG was in the busines of writing derivative contracts and swaps. Last year this aspect of their business has put them at deaths doorstep. In the fall of last year AIG was saved from collapse with a package that grew to $150 billion of bailout money. It has not stopped with, now AIG is seeking another $30 billion in new capital.
Who will Survive AIG or the Derivatives Nightmare?
This is no ordinary downturn. After the biggest credit bubble in history, we face a correction on an unimaginable scale. Make no mistake about it: This is a credit-cycle bust that the government cannot stop. The losses are already catastrophic. And the massive unwinding is nowhere near finished yet…
5 Financial Crisis ‘Aftershocks’ You Must Prepare For Today
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The buzz on Capitol Hill is that Congress could pass an updated version of the bailout bill before the end of the week. But Shah Gilani in Money Morning says taxpayers are being “force-fed a political solution, instead of a sound economic market-based solution to a financial crisis.” He says the the bailout bill has eight key failings.