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To: CommanderCricket who wrote (109507)9/16/2008 9:32:27 AM
From: carranza2  Read Replies (1) | Respond to of 206325
 
The Fed will force GS and JPM to bail out AIG by promising to backstop them.

Lehman was small beer compared to AIG.

I am tempted to buy a bit of AIG on this premise.



To: CommanderCricket who wrote (109507)9/16/2008 9:44:16 AM
From: Fiscally Conservative  Read Replies (1) | Respond to of 206325
 
Yes,you're right about AIG being too big to fail. But at what price? Therein lies the inevitable question.

The Fed,imo,will backstop LEH as well AIG. The markets only need to know the threshold limit by which their debt instruments are structured. Should these Co's all of a sudden had the backing of the US treasury where might these equities be trading today?

In edit: AIG just pop off the lows. I'm in at $1.76~!