Tuesday, September 16, 2008
Quick note from Seedcamp. I have a really, really feeling that today will be really bad. I'm pretty certain that yesterday was by no means the culmination of the collapse. If AIG goes down, we are in serious trouble of a systemic and catastrophic breakdown and unwinding.
What will be the consequences of AIG's liquidity problems when coupled with its regular insurance obligations on the gulf coast?
The time of wealth creation without value creation is over. Good riddance.
I only wish that the effects could be contained to the group that caused the problems.
// Curtis Faith // 3:33 PM
AIG is illiquid, not insolvent. I'm sure banks will find out a way to extend some kind of bridge financing to them.
Plus it's FOMC day, so the unwashed masses will probably be buying hand over fist when the Fed cuts rates (they almost HAVE to based on the 13 week T-bill rates).
// Jason Kolb // 3:35 PM
As a reader for a long long time,I thought I would take a look at the blog today in the hope you had posted. I am glad I headed your warnings. You are too modest to say it, but right now you are quite entitled to be shouting " told you so " from the rooftops. I hope you post again soon.
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