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AIG ill just thinking about it!

For Chonique Agora [ AIG and CDS could precipitate the collapse of markets ]

"... confirmation of a serious warning on mini-crash AIG collapsed -9% and -12.8% -22% sequentially and then Monday, Tuesday and Wednesday. Apart from the difficulty to assign subsidiaries at a good price and rumors of heavy losses in the sector recurrent cursed CDS resurface. "

With the buffet a few tons of CDS shot point blank, the zombie AIG had handed over his legs this winter through good perf 'blood taxpayer (thank you, Uncle Paulson!):

"From the enormous amount injected in recent months in the U.S. insurance giant AIG to save it from bankruptcy (127 billion) , much (50 billion) was returned to the banks who sold the insurer's toxic. "

[The Crisis for Dummies" Scandal around the bailout of AIG "]

But here, the CDS are on their way, it seems that the animal does not cash out the heat of summer.

End thriller for AIG? Not so fast, because Uncle Bernanke is there with his clysthère dollars in fees, which comes from a small to inject one billion in the arteries of the institution most rotten of all international banking Capernaum:

"Credit extended by the Fed in Connection with the rescue of Insurance American International Group Inc.. rose from one billion to $ 83.4 $ 82.7 one billion last week. Last week AIG Announced That It Agreed to hand over stakes in Two overseas units to the New York Fed to Reduce icts central bank debt by $ 25 trillion. "

Source: [Bloomberg:" Fed AIG Rescued by "]

We talk too much of AIG, I think ... this makes a bit like the Bear Stearns case in early 2008, provided that you have not already forgotten the name of evil memory ... [A little reminder here: Bloomberg ]

But, panicked by the massive job losses this month June and continued through the dive of GDP and U.S. real estate, the average consumer could not continue to consume more. ... And then hello waltz CDS in the portfolio of AIG. At the risk of stress are you repeat

"all the risk of global financial pyramid is concentrated into a single weak point : CDS guarantees granted by the monoline bank for many many CDOs"

[The Crisis for Dummies " hello ... goodbye Ambac crisis! "]

With any luck, no need to wait for the crash of October 2009, the second season has just begun. Otherwise, we will have to redo Nip Tuck or resume Heroes.

But it must be said, to make us shudder nothing like the roaring and rolling eyes AIG who, supported by his horde of rotten bankers, killing our small economies Loved synthetic CDOs.

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Crisis for Dummies