Guys, I work at Morgan Stanley and have to deal with this nonsense every single minute of the work week. AIG is far too big for the government to let it fail. Its not only the US, its everywhere. AIG is huge in Europe and Asia and it would be way more costly than 85B if it failed. Much like Freddie and Fannie wouldve destroyed the economy had the gov not stepped in. Some might argue that in a capital system, some businesses are bound to fail and others to succeed, and this is true. The issue is that these are extraordinary times and the normal rules hardly apply. The past two days have been absolutely insane. Even companies that are economically sound are getting punished to the point of forcing their stock price down by 50%+ For gods sake, Goldman stock went down to 85 dollars today...that has never happened before, ever! Wachovia went up something like 55% in an hour.
If you have stocks, please stop freaking out. Fear is driving the market, not reason. There are definitely bargain opportunities out there, but be careful because there's too much volatility. If you buy something, hold on to your balls because its going to be a bumpy ride.
If anyone has questions or concerns let me know I'd be happy to help.
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Coming soon.
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