Preventing Financial Armageddon depends on saving AIG

[AlfredJPruffock]

By most accounts they need $80 billion within the next 2 days.

Not going to happen IMO. And yes, it's going to get very messy.

I can lend them a fiver till Friday ;need it back pronto like - otherwise I''ll send the boys round.

[chef]

we're saved well sort of

http://news.bbc.co.uk/2/hi/business/7620127.stm

"The US Federal Reserve has announced an $85bn (£48bn) rescue package for AIG, the country's biggest insurance company, to save it from bankruptcy."

[ace00]

Wall St. investment banks implode.
Government forced to nationalise World's biggest insurer.
Market reaction (DJIA) - goes up over 1%.

Is there any logic in the financial markets? I don't think so.

[GreenerGrass]

Wall St. investment banks implode.
Government forced to nationalise World's biggest insurer.
Market reaction (DJIA) - goes up over 1%.

Is there any logic in the financial markets? I don't think so.

If they hadn't saved AIG the markets would have dropped 5%.

[BrilloPad]

Is there any logic in the financial markets?

The same logic as a casino.

One of the main measures of option risk is vega. I am never sure if that is as in Las Vegas or vaguer?

[AlfredJPruffock]

Wall St. investment banks implode.
Government forced to nationalise World's biggest insurer.
Market reaction (DJIA) - goes up over 1%.

Is there any logic in the financial markets? I don't think so.

Yes because the market is always factoing the future potential of the market as well as the current situation.