Items of Interest:
5 questions: Why AIG matters to you -- People with AIG insurance policies are wondering if the company's problems will affect them. Here's how...and why you should care even if you aren't a customer.
American International Group is the world's largest insurer and at the moment, Wall Street's biggest worry.
The insurer is struggling to raise cash while economists and investors debate whether or not it should get a government bailout. But despite the importance of the company, the average American is probably not sure how, or why, its problems will affect them.
Here are five key questions and answers about AIG's current woes and what they mean to you.
I have insurance through AIG. How worried should I be about the problems at the company?
At least in the short term, you probably don't need to be worried at all...
- On Wall Street, Like Main, A Problem of Denial - Joseph Nocera, NY Times
- The Resilience of American Finance - Jeremy Siegel, Wall Street Journal
- What Will Come Next? - Robert Skidelsky, New York Sun
- It's Good to Let Firms Fail - Kenneth Rogoff, Washington Post
- Paulson Has Created a Crisis - Anatole Kaletsky, Times of London
- Paulson's Courageous Action - Larry Kudlow, RealClearMarkets
- Hands Off For the Government - Editorial, Los Angeles Times
- Apocalypse Not: Thoughts on Lehman's Fall - Irwin Stelzer, New York Post
- Was Monday's Plunge Capitulation? - Mark Hulbert, MarketWatch
- The Fed Gets Ready to Gulp, Save the System - John Berry, Bloomberg
- Gales of Punitive Destruction - Brian Wesbury, FT Portfolios
- Call It the Weekend That Changed Wall St. - Steven Davidoff, DealBook
- Notes on the Investment Banking Apocalypse - Mergers & Inquisitions
- Moody's, S&P, Fitch & The SEC Are Useless - Mish's Global Econ Analysis
----New York Times:
Fed Takes Steps to Aid A.I.G. — Major credit ratings agencies downgraded the American International Group late Monday, worsening its financial health, as Federal Reserve officials and two leading investment banks were in urgent talks to put together a $75 billion line of credit to stave off a crisis at the company..
Discussion:Pierre Paulden / Bloomberg: Lehman Auctions $852 Million of LBO Loans as Prices PlummetSean-Paul Kelley / The Agonist: AIG Is Toast — I may be wrong, but I'm willing to go out on a limb …Wall Street Journal: AIG Pulls Together Survival PlanElrod / The Moderate Voice: And now AIG is on the brink — The Federal Reserve is working …Yves Smith / naked capitalism: AIG Downgrades of Monday Do Not Trigger Collateral Posting for Swaps …
Randall W. Forsyth / Barron's Online: An AIG Accident Could Dwarf Lehman's
Michael Lewitt / New York Times: Wall Street's Next Big Problem
Discussion:John Berlau / OpenMarket.org:Mark Thoma / Economist's View: “!*#\”£$%&?!!! “ — Should the government help AIG?:Yves Smith / naked capitalism: Brace for the Tsunami: Fitch, S&P Downgrade AIGSean-Paul Kelley / The Agonist: AIG Death Watch
Lehman bankruptcy: In capitalism, failure is not a dirty word
Discussion:Iain Murray / The Corner: Lehman Bros: About Time! — John Berlau, of the Center...Reliapundit / The Astute Bloggers: THE CREATIVE PART OF THE CREATIVE DESTRUCTION AT LEHMAN'S HAS BEGUN …