Market Update: DOW breaks 7200 down 200…..AIG needs more taxpayer money….

UPDATE: The AIG story broken by David Faber is now up on CNBC here

…the loss will be near $60 billion due to writedowns on a variety of assets including commercial real estate.

That massive loss is likely to spur downgrades in its insurance and credit ratings that will force AIG to raise collateral that it doesn’t have.

In addition, if AIG’s book value falls below a certain level, as it seems certain to do, it will trigger default in certain of its debt instruments, say people familiar with the situation.

All of this adds up to a huge headache for the Federal Reserve and Treasury, which have already provided over $150 billion of assistance to AIG.

Talks between the government and AIG are focussed on how the company can swap some of the debt held by the government for equity in AIG. The problem is that the government’s ownership stake cannot exceed its current 79.9 percent, leaving officials to try and find a creative way to transfer value to the US in exchange for AIG reducing its debt so that it can then borrow more from the government to meet its collateral calls.

Welcome Back…to the 70s the way Team Obama is going….Hey Obama had Earth Wind and Fire play for the Governors last night, all part of a theme baby!

DOW drops under 7200..down 200 now to 7162, S & P breaks down 22 to 748, heading to 97 levels… NAS is ..ugh!, down 43 to 1397 Jeebus..and still dropping..

AIG going to report the worst earnings of anyone EVAH! 60 Billion dollars, government already gave 150 BILLION to AIG…David Faber of CNBC reports the lawyers are meeting with Government Sunday and if no deal reached…to bankruptcy they go…..So they have RUN not walked RUN to Uncle Sam aka American Taxpayer Wallets for ANOTHER bailout!!!! And we taxpayers are getting soaked there, gee who came up with that original AIG bailout?

GEITHNER!!! Yes the markets aren’t capitulating, I say they are plummeting into despair, along with the rest of America….wait til we all get a load of the proposed budget form Team Obama this week. oy gavault!

I worked for AIG and AIG just paid DEFERRED COMPENSATION IN MILLIONS to high level employees, with taxpayer money and they want MORE? WTFrak are we coming to..who can fail?

Betcha  the Middle Class isn’t high on their TOO BIG TO FAIL list right now..

LET AIG GO, LET GOLDEN SLACKS TAKE ITS LOSSES, WHY ARE TAXPAYERS GETTING SOAKED, THE GOVERNMENT ALREADY OWNS IT! MAKE IT AMERICAN INSURANCE TO TRANSITION POLICYHOLDERS TO NEW INSURER!!!

February 23, 2009. Tags: AIG, Cabinet, CITI, David Faber, Earth Wind and Fire, Economic Stimulus, Economy, Fed, FEDERAL RESERVE, Finance, Obama Administration, Politics, recession, Roller Boogie Wonderland, Stimulus Package, TARP, TIMOTHY GEITHNER, Wall St. Cabinet, Economy, FDIC, Film, Finance, Music, Obama Administration, Politics, Popular Culture, TARP, Uncategorized, Wall St.