American Insurance Group has posted a record: the largest quarterly loss by any US company in history. $61.7 billion down the drain in Q4 '08.
Today the government pumped in another $30 billion to stave off collapse, bringing the total of the $85 billion bailout to $180 billion so far. Analysts say that a $250 billion total isn't unrealistic (which means 300 or 350 is a realistic total!) - and this for just one company!
This illustrates the profound danger of derivatives to our entire financial system - the total derivatives exposure is enough to wipe out the entire GDP of the industrialized world for the next several years.
Today also marked the first day I've seen the word "Armageddon" in the mainstream press!
Arrrgh!
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The French Revolution
1 day ago
2 comments:
The word I'd like to see in the mainstream press for all these companies is "bankruptcy," as in "filed for." That is how troubled companies deal with insolvency. Good assets are bought by healthy companies, bad assets are written off, and the balance sheet is exposed for investors to see. These problems are being caused largely because no one knows what the balance sheets REALLY look like. This is MADNESS.
If the fraud were fully exposed there would be a revolution, and TPTB know that.
That honesty stuff is a nice idea, though...
Might be worth a try to run an economy that way if we ever get the chance!
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