Look out below! Double-bailout recipient AIG is due to report earnings Monday, and according to Reuters, it ain’t gonna be pretty. When the market is expecting a loss, and you then post a loss that is $59 billion dollars greater…well, you know what they say about markets and surprises. Reuters just broke this news, and it is going to shake the markets to the core. If AIG can’t find funding, it’ll never be able to meet its obligations and one of the biggest insurers in the world is gonna go belly up, and take a ton of others with it in an apocalyptic domino effect.
A $60 billion dollar quarterly loss is the greatest quarterly loss ever posted by any company in history. It’s bigger than Time Warner’s $54 billion single-quarter loss in 2002 and dwarfs the $24.5 billion loss AIG posted in the third quarter, when the government increased its rescue package for the insurer to about $150 billion.
AIG insured tons and tons of derivative credit swaps and mortgage backed securities, and the insurance they wrote enabled the issuers of said derivatives to be rewarded with AAA ratings. There is currently $650 Trillion in derivative exposure held by the banks. We can’t even print enough money to fix these crimes, we wouldn’t be able to afford the paper and ink.
AIG is said to be meeting with the gub’mint on Sunday before the bad news is announced Monday. By Monday, it’s likely AIG stock will not be trading anymore. Good news for George Soros and Paul Volker who are CLEARLY short the entire market, as they’re ringing every bell within reach about the dire circumstances we are in.
Rest assured, however, because VP Joe Biden is now overseeing the spending bill. Barry crowned him King Of The Porkulus today, and hilariously thought this would comfort America. We are SO screwed. The Biden Hedge funds have been discovered to have been in bed with Allen Stanford, the Texas Bernie Madoff. And Biden can’t even freakin’ COUNT. (see clip below) It’s tea time, America.
Yeah, THIS GUY.
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