AIG facing liquidity crisis!

[coiter]

sayang. sana pala kumuha ako ng AIG credit card at sinagad ang cedit limit. then wait for it to go bankrupt and close shop. hehe

anyway, again american taxpayers' money to rescue an ailing private company. well i guess the feds weighed the pros and cons of doing this and judged that rescuing AIG has less repurcussions than letting it fall into bankruptcy.

what's scary is nobody knows who will be next. so will the feds have enough to rescue everyone?

[jeDi13]

Letting AIG go bankrupt would stop the Earth's rotation hehe

That's how big AIG is.

this made me laugh hehe as if AIG is the only insurer in the world..

it's better to stay out of AIG/PhilAm while you can.. of course no company will admit that they're going bankrupt. it's one of their marketing strategies.. PhilAm and AIG are connected somehow even with different investment placements.

[uls]

Ya AIG isnt the only insurer in the world... but it is the biggest.

AIG has policyholders in almost every country on earth.

Dito lang sa Pinas, ilan ang policyholders ng Philam...

If AIG declares bankruptcy... well, we can imagine...

Headline news sa lahat ng dailes, TV Patrol, Saksi...

Angry people showing up at Philam offices demanding to withdraw their money...

Even if you're not an AIG policyholder, you can be affected.

Let's say u get into a car accident,

Fortunately, the guy who crashed into your car has insurance...

but unfortunately, he is an AIG policyholder...

[tidus1203]

More importantly many other insitutions also have stake in AIG's survivial. These banks all hold each others paper. Hamo mo even the collapse of Lehman Brothers affected Banco de Oro and Metrobanl, I wouldn't have thought of that at all. And AIG is a much bigger player in the broader financial industry than Lehman Brothers ever is...

[tidus1203]

sayang. sana pala kumuha ako ng AIG credit card at sinagad ang cedit limit. then wait for it to go bankrupt and close shop. hehe

You still have to pay your credit card actually mas magiging mahigpit pa nga sila if they go bankrupt since they are now more desperate for money. Bankruptcy means its a legal remedy to seek protection from creditors. So ang mangyayari the firm will be sold down and all collectibles will be collected (yes your credit card obligations included) to pay back AIG's creditors and any leftovers will go to the shareholders. So it dosen't mean kung bankrupt na ang AIG makakatakas ka na sa obligasyon mo actually quite the contrary.

[jeDi13]

^ yup i agree. but staying away from/avoiding business transactions with AIG/PhilAm will hurt you less.

[jeDi13]

this is the perfect time for other insurers to earn the trust of investors and people in general. what's next in line? there's sun life, manu life, pru life, axa life, and a lot more. but sun life is the next in line. already operating for more than 100 years here in the philippines, survived the WWs, what more should i say?

[uls]

and to add to what Tidus said,

AIG is like a bookie.

many many bettors made bets with AIG in the derivatives market. (CDS)

If u made a winning bet, the bookie pays up.

In the case of AIG, many bettors are counting on AIG to pay them when the mortgage bonds AIG insured defaults.

If AIG goes bankrupt, the bettors are screwed.

there will be massive unwinding in the derivatives market.

everyone will be trying to figure out who owes how much to whom and who owns what...

magulo yan...

[Zeus]

OMG!

it actually happened

from CNBC



well, it had to happen.

If the US govt didnt act, AIG would file for bankruptcy...

Ibig sabihin mababayad na ni AIG ang mga obligations niya, safe na rin ba siya?

[_Cathy_]

Does that mean I can pay for our house insurance already? It's under philam and it was due last month pa. hehe.