Comments on: AIG Unlikely to Payback Bailout $ This Century http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 22:30:38 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: karen http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207144 karen Fri, 21 Aug 2009 13:52:24 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207144 This AIG story reminds me of when Sirius Radio hired Howard Stern for such a phenomenal sum that I thot to myself, how is Sirius going to make that kind of money let alone pay a single employee that kind of money... This AIG story reminds me of when Sirius Radio hired Howard Stern for such a phenomenal sum that I thot to myself, how is Sirius going to make that kind of money let alone pay a single employee that kind of money…

]]> By: DeDude http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207128 DeDude Fri, 21 Aug 2009 13:18:11 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207128 “People are being told now that the promised GSP college savings plan in pa has liabilities that exceed assets” Those plans were always a disaster waiting to happen. Presumption was that in the long run they would absolutely make a profit. Lots of other insurance products have the same basic flaw. I think that is the main reason that they always seems so determined to rescue the bond holders when things go bad. If they allowed the bondholders to take it then all kinds of sh*t would hit the fan on main street. “People are being told now that the promised GSP college savings plan in pa has liabilities that exceed assets”

Those plans were always a disaster waiting to happen. Presumption was that in the long run they would absolutely make a profit. Lots of other insurance products have the same basic flaw. I think that is the main reason that they always seems so determined to rescue the bond holders when things go bad. If they allowed the bondholders to take it then all kinds of sh*t would hit the fan on main street.

]]> By: william street http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207099 william street Fri, 21 Aug 2009 10:31:53 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207099 Hey BR or anyone, re-read fubar's post. You guys are all wrong. How much does AIG really owe? Its probably around 60bn. Maiden Lane II and III are probably like 80 bn and doesn't have to be repaid. Then there's the govt's 80% stake. You don't have to pay back equity. AIG probably does have to pay the credit line which is drawn down by around 60 bn. And that last move putting some life companies in an SPV earned some kind of credit somewhere. I don't think AIG even owes 182bn. Its much less. And while you're at it, Look at Citi's 301bn of asset guarantees. That will not be paid back. It was a give away. Not a bailout. Hey BR or anyone, re-read fubar’s post. You guys are all wrong. How much does AIG really owe? Its probably around 60bn. Maiden Lane II and III are probably like 80 bn and doesn’t have to be repaid. Then there’s the govt’s 80% stake. You don’t have to pay back equity. AIG probably does have to pay the credit line which is drawn down by around 60 bn. And that last move putting some life companies in an SPV earned some kind of credit somewhere. I don’t think AIG even owes 182bn. Its much less.
And while you’re at it, Look at Citi’s 301bn of asset guarantees. That will not be paid back. It was a give away. Not a bailout.

]]> By: David Merkel http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207088 David Merkel Fri, 21 Aug 2009 06:22:44 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207088 Barry, I said the same in my morning financials report. No way they repay the US government. Barry, I said the same in my morning financials report. No way they repay the US government.

]]> By: beaufou http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207085 beaufou Fri, 21 Aug 2009 05:19:39 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207085 All you have to do is declare that AIG's shite is worth $180 billion, then the government takes the shite as a reimbursement and then sells it to the Chinese and matches shite for shite. Simple isn't it? All you have to do is declare that AIG’s shite is worth $180 billion, then the government takes the shite as a reimbursement and then sells it to the Chinese and matches shite for shite.

Simple isn’t it?

]]> By: fubar http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207084 fubar Fri, 21 Aug 2009 05:18:39 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207084 Everyone just throws around this $182 billion number. Isn't that just the total committed to all the AIG bailouts? What does AIG actually still owe? How much of the $182 billion is in undrawn credit? What's the impact of Maiden Lane II & III and the preferred stakes in Alico and AIA on that number? I'm too lazy to figure this stuff out myself. Why doesn't someone break down the numbers in more detail? Everyone just throws around this $182 billion number. Isn’t that just the total committed to all the AIG bailouts? What does AIG actually still owe? How much of the $182 billion is in undrawn credit? What’s the impact of Maiden Lane II & III and the preferred stakes in Alico and AIA on that number? I’m too lazy to figure this stuff out myself. Why doesn’t someone break down the numbers in more detail?

]]> By: I-Man http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207083 I-Man Fri, 21 Aug 2009 05:14:19 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207083 you know I and I west coast thor... you know I and I west coast thor…

]]> By: I-Man http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207081 I-Man Fri, 21 Aug 2009 05:02:31 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207081 How bout that gravestone doji on the SPX 15 min charts... Touching right off the backtest of the broken rising wedge that started on tuesday? Coupled with the current action in asia, could be setting up for a confirmation of the sell off. http://www.bloomberg.com/markets/asia_index.html Good stuff for dollar bulls/equity shorts/commodity shorts. One trade. How bout that gravestone doji on the SPX 15 min charts… Touching right off the backtest of the broken rising wedge that started on tuesday?

Coupled with the current action in asia, could be setting up for a confirmation of the sell off.

http://www.bloomberg.com/markets/asia_index.html

Good stuff for dollar bulls/equity shorts/commodity shorts. One trade.

]]> By: Onlooker from Troy http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207080 Onlooker from Troy Fri, 21 Aug 2009 05:00:09 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207080 Andy The thing that bothers me about that quote, “…they shouldn’t have come in in the first place.” is that it's just another manifestation of this myth that the banksters et al are trying to propagate that there was never really all that much wrong; that they didn't really need to be bailed out; that it was just overreaction and overreach by govt; that people just panicked; etc. It's maddening. Andy

The thing that bothers me about that quote,
“…they shouldn’t have come in in the first place.”

is that it’s just another manifestation of this myth that the banksters et al are trying to propagate that there was never really all that much wrong; that they didn’t really need to be bailed out; that it was just overreaction and overreach by govt; that people just panicked; etc. It’s maddening.

]]> By: Thor http://www.ritholtz.com/blog/2009/08/aig-wont-payback-bailout-s-this-century/comment-page-2/#comment-207077 Thor Fri, 21 Aug 2009 04:41:45 +0000 http://www.ritholtz.com/blog/?p=36131#comment-207077 Don't any of you easterners ever sleep? :-) Don’t any of you easterners ever sleep? :-)

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