Tuesday, Sep 16, 2008
The Dow just went from Minus to Plus
Bloomberg: Fed Said to Reverse Stance, Consider AIG Loan Package
The Federal Reserve is considering extending a ``loan package'' to American International Group Inc., the insurer facing a cash shortage, according to a person familiar with the negotiations. The stance by federal regulators is a reversal from a position they held as late as last night, and people with knowledge of the talks are ``cautiously optimistic,'' said the person, who declined to be identified because negotiations are confidential.
Posted by alan @ 09:21 PM (775 views) Add Comment
8 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. whiteknight said...
cant help themselves can they?
like addicts.
2. whiteknight said...
Let Lehman fail and then go weak at these knees. These boys don't have the minerals.
What are Lehman employees (ex) going to think?
This is man-management amateur night. I wouldn't put these guys in charge of a tuck shop.
3. tyrellcorporation said...
I'm sure this is just buying some time so they can offload their holdings - sticking plaster to placate Wall St, IMHO.
4. whiteknight said...
Goldman have a stake in it or exposure to it?
5. alan said...
White Knight,
I watched Bloomberg tonight, those guys were DESPARATE to get the index up! All the time the numbers are re-presented as being good. A small decline after the AIG announcement was met with happiness, emphasis and smiles. The previous movements of the past few weeks were forgotten in an instant.
They suggested to interviewees that "the worst is past, isn't it" and "it's likely we have hit the bottom on housing and are coming up". These are closed questions where they really want the answer "YES".
I'm not so sure that bailing out AIG is the right answer - it will lead to a whole queue of others (Washington Mutual, Chrysler etc).
Maybe this (AIG) was already a done deal?
I'm suspicious about the week-end's activity. It was just too pat, everything falling into place on a Sunday afternoon. Convenient that Japan & other markets were closed next day! Conspiracy theories ..... maybe!
6. last_days_of_disco said...
Certainly this stuff is orchestrated, as much as is possible. Wouldn't you do that considering the stakes?
I don't think there is any need for conspiracy theories, they are doing it in plain sight with their "behind closed doors" meetings which leak a bit of info. Just enough good news to keep things going. Its pretty obvious there is a lot of attempted orchestration, but I don't things are going completely to "plan".
7. d'oh said...
alan - you are correct. The weekend was orchestrated, as were the comments from Senator Shelby this evening in my opinion.
8. whiteknight said...
Well of course they have the best timing they think they can do.
I heard the lights were on at the Bank of England and they were working late on the problem. No doubt the same is going at the FED.
Turns out the very best solution is very much easier:
somebody needs to clear both buildings with a "come on off home you go.... actually you know what - take a couple of weeks off aswell guys. See you in 2."