The bleeding has stopped. The initial bridge loan (bailout) was done hastily and included some very unfavorable terms for AIG. Once things settled down, the terms were reworked which not only gave AIG more time to repay (5 instead of 2) but also included equity and an influx of cash which was badly needed at the time. The liquidity issues which prompted the near failure in the first place have been stemmed and the efforts now are on selling assets and paying back the loan. The new 5 year term allows AIG to sell assets for amounts closer to their value because the sharks, smelling blood, were trying to get them on the cheap. Any money made from the disposal of assets goes straight to the Fed. Cramer's an idiot, but that's beside the point. The new CEO (took over POST bailout) is a firecracker and does indeed have a handle on the problem. He's a former CEO of Allstate. The old guard is virtually gone and newer, fresher blood has been brought in. The goal is to return AIG to it's roots, i.e. a major Commercial Insurance Company. It's been estimated that in the end, AIG will be the largest P&C company in the country, around #59 on the Forbes 500. AIG is symbolic of the Fed bailout and I understand how people get worked up when they hear things on the news, but we are not crooks trying to take advantage of John Q. The ramifications of an AIG collapse would be far worse on the economy that the $85B loan. I also spend a lot of time all alone in hotel rooms. So it's either you guys or a prostitute.:hihi:
No, just informed. That's something you should strive for. Please don't ever approach me if I'm drinking.
Well all I can say is Buuuuuuullllllchiiiiiiit! You've never been to a big seminar or a conference have you? I wasn't talking about the Motel 6 near the Bunkie airport, Scooter. What is large? OK, say a seminar has 300 attendees. That's 300 rooms that have to be available on top of the other room commitments that a big hotel already has. So, let's say a 600 room hotel might accommodate them, with enough lead time. Then they are going to need a very large banquet hall to seat them all and probably about 6 meeting rooms. Such hotels are upscale and very large. They have names like Doubletree, Radisson, and Marriott, a fountain in the lobby, and a doorman dressed like Sir Walter Raleigh who makes 100K. The Holiday Inns, Best Westerns, and Red Roof Inns that you envision rarely offer the kind of conference facilities needed and average less than 120 rooms.
If anyone is interested here's AIG CEO Ed Liddy on Larry King last night regarding the ABC story about the Phoenix meeting. One pertinent fact: The 150 financial planners in attendance sold $200 Million worth of AIG product through October 31, 2008. The seminar cost AIG $23,000. http://mms.tveyes.com/transcript.asp
I'd be glad to approach you at any time And yes I think AIG sucks, I don't think they should be doing any type of conferences whoever pays. And the selling of assets to payoff the govt is a sham. What about the damn shareholders! The whole thing stinks!
Wow all of this talk and no sources for backup.. Very unlike Red. Doubletree, Radisson and Marriott are not upscale. Assuming more about someone you don't know. Very unlike Red.
There you go. Keep propping up your AIG baby while I sit back and watch it crumble. What's the stock at again? $2 bucks...?
