AIG Bailed Out; Jim Cramers Says: "We're Communists Now!"

[StlSluggers]

Cramer might be on to something with that comment...

The Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the insurer, after it lost billions in the risky business of insuring against bond defaults.

Of course, Cramer said that AIG needed to be bailed out because it was just too big.

Anywho... What are you going to do with your share of AIG? I'm thinking about going on a cruise.

[RugbyD]

The good news is that their other insurance businesses are separate OpCos and are just fine, but the credit insurance biz just blew up the parent company.

[StlSluggers]

I almost had a life policy issued by AIG a few months ago, but a paperwork snafu screwed it all up.

Not sure if I'm glad about that or not yet... the rate was pretty good.

[RugbyD]

I almost had a life policy issued by AIG a few months ago, but a paperwork snafu screwed it all up.

Not sure if I'm glad about that or not yet... the rate was pretty good.

it would have been fine even without the bailout. Their propoerty and casualty biz did not guarantee the credit insurance biz as far as I know.

[StlSluggers]

I was going to start the process back up with them. They were far-and-away the cheapest out there...

I'll be curious to see if their rates change to help pay off this bailout loan.

[RugbyD]

I was going to start the process back up with them. They were far-and-away the cheapest out there...

I'll be curious to see if their rates change to help pay off this bailout loan.

I don't think it should. The Fed is supposed to sell of AIG's separate business units, so things might be clamped down a bit while that process is underway, and afterwards whoever bought the respective unit would set prices.

[StlSluggers]

I was going to start the process back up with them. They were far-and-away the cheapest out there...

I'll be curious to see if their rates change to help pay off this bailout loan.

I don't think it should. The Fed is supposed to sell of AIG's separate business units, so things might be clamped down a bit while that process is underway, and afterwards whoever bought the respective unit would set prices.

Yeah, I think I'll just hit up a broker again to get a new sweep of the rates.

[Yoda]

I bought some shares yesterday (not much). I know it is a huge gamble but their company assets are worth a lot.

[RugbyD]

I bought some shares yesterday (not much). I know it is a huge gamble but their company assets are worth a lot.

you're betting on their CDS biz to be OK. bad bet, but as long as you didn't risk more than 1% of you investible assets, I'd say its OK.

[Yoda]

Almost doubled my money in two days. Woohoo.