Did you ever think you would see the day when American International Group was in such dire financial trouble that it would be forced to beg for a federal bailout to maintain its rating and perhaps its very solvency? That's the unfortunate situation that has arisen today, with millions of investors and policyholders holding their breath as Doomsday on Wall Street unfolds.
(To read all about the latest developments with AIG, click here and here.)
Meanwhile, the overall financial market meltdown, fueled by the subprime mortgage debacle, continues to widen and deepen. Lehman Brothers is likely to declare Chapter 11. Merrill Lynch will be taken over by Bank of America.
What will become of AIG, short- and long-term, has yet to be determined.
This economy is scaring the life out of me! It's gotten to the point that I don't even want to open the statements on my various retirement and investment funds anymore. I'm diversifed, but there doesn't seem to be any safe havens these days.
The idea of a behemoth like AIG being in serious trouble doesn't help me sleep any better at night, that's for sure!
The federal government is doing what it can to keep sticking fingers in the dike, plugging holes as quickly as possible. But like with the New Orleans levees, Uncle Sam can't do much if there is a total breach. Is that where we are heading?
How do you folks think this will all turn out?!?
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