Wall Street on Red Alert

Originally posted by projectvxn
www.npr.org...

The Paulson is downplaying this pretty hard. Despite the fact that he came out and said the same damned thing when Bear Stearns crashed.

He can't say that the banking industry is in crisis, or he risks causing it to fail further. His words hold power, and economies run on confidence, him saying things suck could cause run on banks.

Originally posted by Sestias
IMO the investors should take the losses, not the government. They own it. The FDIC insures depositors up to $100k, and they should be compensated by the government. If, after all that, the government still has the money, maybe....

The only problem is that the FDIC is not immune to these troubles.

I can't believe how little attention the weekly reports in Global Meltdown are getting...

www.abovetopsecret.com...

This crash is not over.

AIG is in deep doo doo.

Many many large banks have alot of exposure to AIG and apparently, according to David "the brain" Fabor at CNBC the banks have been cashing in on those instruments today and AIG has eroded further..

WAMU credit rating is junk now and look for that to collapse tomorrow.

AIG is next is they cannot get a bridge loan or if they cannot sell assets quickly to cover exposures.

[edit on 15-9-2008 by Tuebor]

Originally posted by Tuebor
This crash is not over.

AIG is in deep doo doo.

Many many large banks have alot of exposure to AIG and apparently, according to David "the brain" Fabor at CNBC the banks have been cashing in on those instruments today and AIG has eroded further..

WAMU credit rating is junk now and look for that to collapse tomorrow.

AIG is next is they cannot get a bridge loan or if they cannot sell assets quickly to cover exposures.

[edit on 15-9-2008 by Tuebor]

CNBC has a good crew; I find them to be the best news team out there, and probably the most fair. Faber, The Fast Money team, Rick Zantelli (smartest man on the network, Zantelli is) and at times Jim Cramer (when it comes to economics, his stock picks aren't always on the spot) make me listen to CNBC. Sure they have some idiots like every other networks, but the names I mentioned really set the network apart. Bloomberg is good with straight up information, but CNBC gives good analysis, at least some of them do. Fox Business is a joke...I'm impressed by their coverage of this crisis, very good work these past few nights. Kudos to the CNBC team....did I mention they have the most beautiful set of women in all of news history?

ANYHOW, they are reporting tons of downgrades of AIG debt tonight, Moody's and S&P...and apparently AIG will be going bankrupt if they can't figure something out by tomorrow night.

[edit on 15-9-2008 by yellowcard]

How's this for a punch in the face. From the New York Times tonight.


Part of a possible deal to infuse AIG with capital is to swap or transfer bonds from subsidiaries for AIG stock. The result.......

Such a transfer would leave the life insurance company with investment assets that would produce less income, so the insurer would probably have to make up the difference by charging more for its life insurance policies, annuities and other products.

source
Higher premiums on my insurance. Nice. Thanks alot

Steve Forbes has an idea that makes sense.

Because AIG is an insureance company regulators kinda have their hands tied.

Instead of a panic bankruptcy of AIG, have a 3-6 month cooling off and break up the huge company which has good assets. Buyers can then step in and pick up the pieces.

Seems like common sense to me.


www.forbes.com.../business/sf_banks091508_pm&feed=rss_news

( there is a quick ad in the beginning of the vid, sorry)

Originally posted by yellowcard

Originally posted by projectvxn
www.npr.org...

The Paulson is downplaying this pretty hard. Despite the fact that he came out and said the same damned thing when Bear Stearns crashed.

He can't say that the banking industry is in crisis, or he risks causing it to fail further. His words hold power, and economies run on confidence, him saying things suck could cause run on banks.

Yup, your absolutely right, the media plays a big name in any business, people do rely on the word of mouth, business moves might seem a bit more sketchy when people are saying this and that... arghh those morons...