AIG.... WTF?
 

So their stock price is up from about $.40 to $1.45 today. Does getting your CEO called in front of congress for scamming tax payers automatically raise the companies value that much?

people probably see the writing on the wall that AIG is gonna get schooled and will be better off for it.

Heh. I had some discussion about this with some of the higher up finance guys in my company (just needed to let you know that these guys are way smarter than me). One of them said that the govt is on the hook to keep these guys afloat for 2 years:eek:

Anyway, the main point of the discussion was that in setting up an exit strategy (splitting of and selling parts of the business) that buyers are having trouble valuing portions of the business, whereas if they filed for bankruptcy the liabilities would be listed and easier to value.

That was a pretty interesting discussion.
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I did particularly enjoy the comment made that the CEO should "resign or commit suicide."

Hamas, are you a senator????
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but only if the government would have stayed out of it.

This is sort of similar to people wondering why Vegas "likes" one team over another team. Vegas doesnt care, they are predicting what the bettors will do, regardless of if they are right.

Stock traders are not reacting on emotion when they buy or sell, they are reacting based on the company's future health, growth, and ability to pay dividends. Sometimes emotion will color their perception of that, but those 3 things are what they are evaluating, nothing else. Yesterday, the odds were that AIG would go bust or be mostly taken over by the feds and the shareholders would be wiped out, so the stock was trading for pennies.

Now, with some encouraging news that the economy sucks but maybe not as bad as feared, perhaps we'll have fewer defaults, AIG will have fewer future losses on their derivatives, and perhaps has a slightly better chance to make it without having to wipe out the shareholders.

The fact that the CEO is answering embarassing questions over a puny $165M is irrelevant. Highly newsworthy, but irrelevant to the stock price.

Take this crap to the DC!

This is not political

I bought several shares of AIG a couple of days ago. It has made a nice return for me. Hope it keeps going.

I was only joshin anyway. I spend more than half my time on the CP over there. I just wanted to be the guy to complain this time. Can you ever forgive me? There is not one thing that ever happens anymore that is not political.

My dog took an AIG on my neighbor's lawn yesterday