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.

9 comments:

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

    ReplyDelete
  2. 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. FDR.

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

    Thank you.

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

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

    All the "losses" line pockets.

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

    ReplyDelete
  9. 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

The USA's political-economc system is best described as:

On Nov 2, 2010, I plan to vote (FOR or AGAINST) my incumbent congressman

 
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