Monday, September 22, 2008
On Saturday, the Wall Street Journal publishes AIG Holders Seek Alternative to U.S. Plan .
This is just a sad preview of what’s to come: the U.S. has (is) socialized the losses and privatized the gains. The Fed already made payments to AIG’s balance sheets; hence, taxpayer money has already been drowned. But if AIG sells of its assets, especially at a fair price, shareholders will make out, having avoided chapter 11 and earned a hefty sum from a potential suitor. All before the Fed acquires its 80% stake.