Posted On: December 6, 2008, 8:28 am CST

Posted By: chill pill

To Chill Pill,

the data and press releases on AIG.com's website are joint press releases by the parties that hammered out the agreements -the Treasury/Fed and AIG. This is not AIG spin (do you seriously believe they can get away with spin with the world's eyes on everything they do these days). What other entity would you trust to believe the accuracy of the information - CNBC, NBC, FOX, Bloomberg???? Come on, the media, stock analysts and rating agencies are the only other entities to get you info - where do you think they get their info - crystal balls. Do you honestly trust the stock analysts research - have you seen their track record lately. Rating agencies rate AIG as A, excellent. Not B or C junk status that would indicate carrier is on verge of failing. They all report headlines and their views, with a slant toward maximizing viewership/readership. AIG getting out of debt does not make headlines like AIG now up to $150B in bailout money. What would you rather talk about at the watercooler? All data released must adhere to GAAP accounting stds and hold up to 3rd party audits.

So, one of your discussion points indicates correctly, that the gov't has bought AIG's bad debts ($30B of multi-sector CDO's and $22.5B of RMBS, to be exact) and $40B of AIG preferred stock. How does that make AIG weaker? Doesn't that put them in a better position to get out of the situation they are in? and if they get out, doesn't it mean the gov't/taxpayers would not suffer a loss as they will get all principal and interest back. The gov't plans to make $$ on the CDOs and RMBS they bought by holding them past the economic crisis (2-3 years) and selling them for more than they are worth given current hugely discounted market rates. You are not arguing that you are more educated on this issue than the Treasury or Fed, correct? If so, what think tank do ytou belong to???

I am not an overzealous AIG fan, just an educated businessperson who has spent the hours to educate myself and read the all the company financials on what is really happening to the 6th largest company in the world, and if their stock is worth purchasing in bulk given their hugely discounted price.

So, if you think you are more educated than I on this subject, I challenge you to show me a more reliable and accurate source for the data and that AIG owes more than a max. of $33B back to gov't. Why would you think AIG would fail, owing $33B and selling a minimum of $100B in assets with over 70 buyers making offers already and trying to get financing to complete the deals? Meanwhile - AIG's insurance operations continue to be profitable and maintain the largest surplus ($27B) of any carrier in the nation.

I do realize we are discussing opinions on the matter and only time will tell who is more accurate. As such, I welcome the opportunity to exchange emails with you a year from now and see if you maintain your existing position that AIG is a waste of taxpayer $$ and will likely fail, leaving taxpayers with a loss.

Have a good one...