Tuesday, March 24, 2009

AIG "Miss"

It is worth examining the recent AIG earnings miss, if only for the entertainment value. After all, every taxpayer in America paid over $2,000 for this penny stock, and we are likely to pay many thousands more before they finally fold.

AIG's Q4 2008:
  • Consensus estimate was a loss of 37 cents per share
  • Actual loss was $62B, or $14.14 per share plus a loss of $153B in taxpayer money paid through Q4 2008
  • Stock price: a buck-and-a-half on the 20th best day in stock market history
What does it mean to devour $215B in 61 business days?

AIG lost:
  • 3.5B per business day
  • $440M per banker hour
  • $7.3M per minute
  • $122,400 per second
The vast majority was paid by you. I can't wait for the Q1 2009 report.

In the time it took you to read this, AIG lost another $5.5M.
Posted by fdralloveragain at 3:00 PM

9 comments:

  1. AnonymousMarch 24, 2009 at 5:01 PM

    The Fed isn't printing nearly enough....on purpose of course.

    ReplyDelete
  2. fdralloveragainMarch 24, 2009 at 7:34 PM

    Imagine the task of finding a borrower to launder $7.3M per minute, just to cover AIG's burn rate.

    We are in The Great Deflation...

    ReplyDelete
  3. AnonymousMarch 24, 2009 at 10:55 PM

    FDR.

    What will be the repercussions if AIG do indeed, have to go bust?

    Thank you.

    ReplyDelete
  4. AnonymousMarch 24, 2009 at 11:05 PM

    FDR
    What would be your thought on someone who has a fixed annuity at AIG. They are state regulated and i was told that if something happened to AIG, it is state law to pay the difference, by the state. I think you can hit the eject button and pay a penalty.

    ReplyDelete
  5. AnonymousMarch 24, 2009 at 11:28 PM

    Money given to AIG did not disappear. They went to counter parties, who will hyperinflate.

    ReplyDelete
  6. fdralloveragainMarch 24, 2009 at 11:35 PM

    "Money given to AIG did not disappear. They went to counter parties, who will hyperinflate."

    All the "losses" line pockets.

    ReplyDelete
  7. fdralloveragainMarch 24, 2009 at 11:39 PM

    "What would be your thought on someone who has a fixed annuity at AIG. They are state regulated and i was told that if something happened to AIG, it is state law to pay the difference, by the state. I think you can hit the eject button and pay a penalty."

    Sounds like a question for someone who knows your state rules.

    ReplyDelete
  8. AnonymousMarch 24, 2009 at 11:54 PM

    VALIC is an insurance company that is incorporated and domiciled in Texas.

    ReplyDelete
  9. AnonymousMarch 25, 2009 at 3:42 PM

    Good read related to AIG:

    http://www.nytimes.com/2009/03/25/opinion/25desantis.html?_r=2&ref=opinion&pagewanted=all

    Punishment of the Innocent is alive and well.

    ReplyDelete

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