Cramer on AIG Rescue

[gLdFsh3787]

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[ElDiabloWhoppo]

Jim Cramer is the worse kind of doucebag.

When he was a 'private operator' he admitted to dirty tricks and illegal activity in an attempt to make bucket loads of money.

Now that he has made his money and never has to work again (except for his own ego) he claims to give an honest opinion to look after the average Joe Sixpack.

Its like a wolf giving advice to sheep on how to protect themselves from wolves

[camaro105]

I have my BEC and my professor has his Phd in econ and the way he explained it was that AIG insured capital for banks. If AIG failed, then no insurance for banks and capital. AIG's CDS insured half of the western banking system. If they failed, so does almost every bank. Banks like Barclays, HSBC, Goldman, Stanley, Citi, etc would have all failed because AIG insured their capital. AIG fails, U.S. depression and global depression would have hit hard. Do research people. Know the company!!

[Andreas748]

@camaro105 .....let them fail. Other insurance companies would've stepped in. Sure it would've been bad, but taking the medicine back then is what was needed. Hank Greenburg telling Erin Burnett.... "AIG is a national treasure....we can't let it fail".....what a croc. She laughed at that comment

[camaro105]

@Andreas748 Here is how is would have been: AIG starts out by being 5 billion in the hole. Goldman, JP Morgan, Stanley, HSBC, Barclays, BofA, etc all want to collect on their CDS's. AIG says "we dont have the capital to fund those CDS's". Each bank records massive losses on the same day and at the same time..due to the lack of payment of the CDS's. Once the banks record the massive losses on their own books, they pretty much go under too. Short sellers would kill them. AIG fails, all fails

[mrwas2000atgmailcom]

Lenny Dykstra! Ha Ha

[PortfolioManager1987]

Cramer's worst "Buy" call in history right here^

Stocks tanked 25% after this..

[uturniaphobic]

the mantra of "capitalism" is to tax those who wish to gain in a venture and not tax the labor.

The tax is used to better the community.

Long forgotten info....

[averageworkinggal]

"CDSs are worthless" - that's a dumb statement.

CDSs are not bonds or stocks.

[Einstiensblackid]

It isn't a dumb statement. CDS are an insurance policy banks used to protect against their reckless lending. But the company who sold the most CDS's is now broke.

In other words those CDS's are worth nothing.

[CAJUNNSC]

Yeah yeah Cramer place it safe then go back and see what you said last week and then check out what you say in the next four months, double talk BS, Cramer is just another wall street insider don't fool yourselves into believing he knows crap about where or what is coming down the pike?

[uturniaphobic]

as eighty-percent shareholder of AIG and hence the controlling interest IN AIG. I vote we dismantle the company and divide the proceeds amongst the people.

All who agree please say "EYE"

thanks for your vid!

[averageworkinggal]

Except for their CDS debacle which we are having to bail out, AIG is a cash cow.

Once the CDS tide passes, the rest of AIG will generate earnings to pay the tax payer back.

So we keep AIG until it pays us back.

[uturniaphobic]

great!! I'll look for my dividend check in the mail!

AIG had to pay out failed mortgages that IT CHOSE to insure. No mercy! that is capitalism.

to live by a sward and not die by it is an injustice that you and I pay for.

Also AIG is the culprit in high insurance costs. they own the playground hence set the rules

Personally I am boycotting AIG

[averageworkinggal]

The government owns at least 80% of AIG and nobody is going to get dividends until the government gets their money back.

European banks bought CDO tranches from Wall Street and sold the risk via CDSs to AIG in London.

If AIG goes down, those CDSs are worthless and those European Banks go bust.

Also, big insurance companies also sold their risk to AIG.

They would go bust to.

AIG could set off the chain reaction, which is why it gets bailed out.

[uturniaphobic]

the word "RISK" implies a potential loss. so we should not use that word.

Ok so they all go down..then what?

another jumps in to take its place. that is capitalism

My dividend ramark was a joke..as if As far as we know the CDSs ARE worthless today.

[averageworkinggal]

You just confirmed that you aren't a financial expert with your incoherent ramble.

If the biggest European banks go down, if Goldman Sachs goes down, if Bank of America (because of Merrill Lynch) goes down, since they are all exposed to AIG for billions in CDS protection, there aren't others that jump in to take their places and the credit markets freeze up solid because other entities might be exposed to AIG going down.

[uturniaphobic]

and how did this come to be? where a corporation can hold a country hostage...via capitalism? Sure let them go on and slant our dollar to crap and shit credit out the door...with folks like you is all too easy. so buy into the idea that free markets and capitalism are the same thing while the "free market" is but a tool to extract wealth from a country. Take the medicine and live

[averageworkinggal]

Idiot, the way to really destroy a nation's wealth is to elect a marxist, wealth redistributionist president, as the US just did.

AIG is chump change compared to the wealth destruction since Obama went ahead in the polls, got elected and became president.

If you really want to destroy a nation's wealth, elect an anti-capitalist president as the US just did.

[uturniaphobic]

great, name calling...4th 5th grade?

and why did the price of a home escalate out of reach the last 6 years? did someone say slut-credit. Oh but no one wanted to say ANYTHING while stuffing their pockets. CRUSH 'EM! or we do it again..."idiot" how robust a remark

[Anililagnian]

Does anyone know the definition of National Socialism? Mussolini did. Hitler did. Socialism to preserve Capitalism is National Socialism, stupid.

[klined]

And he didnt even get to the key part:

By bailing out AIG, we are bailing out EUROPEAN holders, not even American. Why does american tax money need to be used to bail out European fatcats again Jim?

[blanketz0r]

He's definitely lying at the end

[curiousjoe2007]

Jim don't know a jack shit. No wonder he's broke every few years and have to brag for media job to make a living.

[rgviza1]

Welcome to the USSA.

[fedroger]

Well the United STates is a mixed economy

[kayfes]

Yes the feds now own an insurance company epic. And its starting to get scary. I think things will really start to get scary when foreign banks start buying out American banks and that might just happen with Washington Mutual.

[aretzz]

Not to mention his ADHD behavior on his lousy show!

[aretzz]

BLA BLA.. he said Bear Stearn's was fine, a few weeks after Fed bailed it out.

This guy is a clown.

[Epic878787]

Right, not a bailout but a purchase(overt socialism). The Federal Government now owns an insurance company, right?