Monday, September 15, 2008

The market seems dependent on AIG (which is a scary thought). AIG is well off its lows and is trading above $6 (but still off 50%). CNBC just flashed that AIG just got a bridge loan from New York State (20 billion) and is in some kind of talks with Warren Buffet. Markets are amazing animals, in that Lehman's collapse has been priced into the market and it has already moved on to AIG.

Update, 9:50 am pst: From CNBC, Buffet is out of AIG talks. Fed has hired Morgan Stanley to examine AIG's books in preparation of a Fed loan. The loan will allow AIG time to liquidate assets.

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