Posted On: November 3, 2008, 12:31 pm CST

Posted By: DD

You all are driving me crazy!

It's obvious that many of you (not all of you) know anything about CDS/CDO's. These are paper losses. If the market changes, the amount AIG borrows decreases due to mark to market valuation- given the current market conditions- these will likely not go any lower (we all have to hope they continue to increase...not just for AIG but for banks who all are facing the same issue) - if mark to market increases happen...AIG will be in a great place with those mark to market increases. Just like many of the banks. AIG have made it clear that they are not relying on this to happen.

AIG had a plan in place before 9/15 to deal with the mortgage losses and they accurately reported them and not just in the fine print of their balance sheets. Do you read yellow book? It just unfolded that market conditions precipitated AIG's announcement of a plan which Liddy has posted to the public.

AIG is working hard to not have a "fire sale" as Liddy put it. Bank mergers and acquisitions take 6 months or longer and Liddy is trying to sell assets responsibility and get their FMV. So, while most of you bash AIG for not selling assets quickly, I have to assume that you think you could sell multi-billion dollar assets at their FMV in 45 days?! Get real!

You act like AIG was the only company the government helped- How soon you forget Freddie Mac, Fannie Mae, etc. I am guessing that you wish the government did not help AIG? Had they not helped, their financial crisis would have spelled disaster for the global economy.

As for them having other parties involved in the sale of assets...you should be happy. They are trying to be prudent and make sure for the better of the company, the people, and the government loan that they make the right decision. No silos.

As for Hank Greenberg- the credit swaps were bought under his reign. I heard that none were bought after he left in 2005. You treat him like a GOD but seem to forget he was investigated for his accounting practices and lack of control on accounting practices and reinsurance agreements.

If the government renegotiates with AIG, you should all be happy, so the return for tax payers would be greater as credit markets tend to improve over time.

When AIG emerges from this, as a smaller insurance company, they will not have the high overhead; they will be smaller and stronger. They will have a high ROE's and then- we will hear many of you crying over the stock you did not buy!

Whaaaahhhh! There's no crying! There's no crying in Insurance and in finance!

Don't get me wrong- I do NOT work for AIG but as an insurance professional for over 20 years, you have to read all the facts and sort through the facts and the BS.