AIG facing liquidity crisis!

**tidus1203** · September 16th, 2008 02:27 PM

Ah basta ako I always play safe. As I have mentioned nothing to lose if you get your money out. Anytime any bank or insurance companies are in doubt I shoot first and ask questions later because the only thing I lose is my few hours of signing documents and calling people versus if I lose my money if the bank collapses.

**1D4LV** · September 16th, 2008 02:34 PM

tingin ko its too premature to react on AIGs effect on Philamlife. They have reserves naman to back up insurance sales, and their funds are invested locally.

besides, Philamlife is the biggest life insurance in the Philippines. Pag yan ang bumagsak, babagsak ang buong local insurance industry, which i doubt the Insurance Commission will be allowing.

**tidus1203** · September 16th, 2008 02:41 PM

Basta ito na lang masasabi ko if AIG collapses siguradong tatamaan ang Philam no matter how healthy Philam is. AIG has mountains of debt to pay its creditors and billions more in obligations for insuring worthless junk mortage backed securities in the states and obviously tapping their assets (subsidiaries) like Philam is the first option for funding to pay of its debt. Maswerte na if Philam is instead sold to another entity and then use the proceeds as funding for AIG's debt and obligations.

**wildthing** · September 16th, 2008 02:49 PM

PAMI may close shop but the fund itself will merely get a new fund manager.

like as if it is that easy to sell a company going bankrupt.

**uls** · September 16th, 2008 02:57 PM

AIG's collosal problem is its involvement in derivatives.

the derivatives market is huge... hundreds of Trillions of $$$ big.

AIG sold credit-default swaps (insurance against bonds defaulting)

It insured trillions of $$$ worth of bonds.

AIG received billions of $$$ in premiums payments... easy money no?

Now the CDS have been triggered... or are about to be triggered...

AIG's counterparties are expecting payment.

But there is no way AIG has enough money to pay the counterparties.

If AIG doesnt come up with the money, it will have to go bankrupt.

Serious stuff no?

**tidus1203** · September 16th, 2008 03:02 PM

^^Hahaha you make it sound so casual pero in reality is disastrous

**uls** · September 16th, 2008 04:26 PM

hehe

ok... seriously...

AIG doesnt have enough cash right now to pay policyholders and fund its operations.

If AIG doesnt raise enough money in the coming days, it will have to file the "B" word.

That's how serious things are.

And the ratings downgrades make it harder for AIG to borrow money.

AIG is very screwed.

Even if AIG does manage to raise enough cash in the coming days, that cash wont last long... and it will still need more cash later on just to stay alive...

In this environment, raising money is NOT easy.

AIG's days are numbered.

Seriously.

----

now this is the scary part...

AIG is BIG. It's bigger than Lehman... bigger than Bear Stearns...

If, i mean, when AIG goes bankrupt, it will be catastrophic.

**tidus1203** · September 16th, 2008 04:35 PM

And I doubt AIG is getting massive new policies after they are all over the news. Would you still be confident to have your business with AIG? Nandyan naman si Metlife, si Aflac diba?

**uls** · September 16th, 2008 04:52 PM

Ya... i would run away from an AIG agent hehe...

----

i'm no expert... and i'm sure nobody is gonna take me seriously.

I don't think AIG can last thru this week.