Things are really moving faster than I have time to process and blog about it.
Big thing on deck is AIG -- Huge liquidity problems. They've been downgraded by Moody's and S&P.
I turn on CNBC and FIRST thing I see is an AIG ad....15/mo for 250k worth of coverage for someone 40 years old. You can tell I'm getting old -- I'm actually thinking to myself -- "hmm interesting"...then I hear the voice over -- "and AIG is the company strong and stable enough so you KNOW they'll be there when you need them most"
(that commercial must have been shot a while ago, huh?)
They cut to the show and all the daytime anchors have been pulled in for an evening session. These fools are everywhere on the show calling for the Fed to supply them with liquidity. These guys are an insurance company, right? This is getting a little ridiculous, but they are saying that they need something like $70B
CNBC at this point is begging for the govt to step in and save these guys. Another chapter in the u.s.s.a.
Gotta tell you, I would be SHOCKED if the markets are allowed to open tomorrow without some kind of intervention by the govt, or an institution backed by the govt.
We are VERY VERY close to an all out capitulation event -- CNBC talking heads are up into the evening in the studio for the second straight night....VIX (volatility index) is shooting the moon -- only two ways it goes -- government saving rich people with taxpayers' money OR market tanks.
I'm betting gov. save, and fed "suprise" rate cut.
We'll see.
UruguayGuy
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