Wall Street Meltdown, and why it is happening.

Fortune's Shawn Tully says excessive leverage and exorbitant pay are causing investment banks to implode.

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Sep. 15, 2008.
Nation's largest insurer hit by credit raters as it tries to raise cash. Fed asks Goldman and JPMorgan Chase to raise $70 billion for firm. Shares end down 61%.

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The pressure on American International Group reached fevered pitch on Monday night as the troubled insurer was hit by a series of credit rating downgrades.

The cuts could prove deadly to AIG, the nation's largest insurance company, which is scrambling to raise much-needed capital.

Late Monday night, Moody's Investors Service and Standard & Poor's Ratings Services each said they had lowered their ratings.

A few hours earlier, Fitch Rating had also downgraded AIG, saying the company's ability to raise cash is "extremely limited" because of its plummeting stock price, widening yields on its debt, and difficult capital market conditions.

The downgrades will make it more expensive for AIG to issue debt and harder for it to regain the confidence of investors.

Fitch said AIG could be required to post $10.5 billion of additional collateral if it was downgraded one notch by one of the other major rating agencies and $13.3 billion of collateral if downgraded by both, Fitch said in a statement, citing AIG's July 31 estimates.

The grim assessments came after a day in which state and federal officials raced to help the insurer gain access to much needed cash.

The company has lost more than $18 billion in the past nine months.

The credit downgrades could doom its business.


Source:
http://money.cnn.com/2008/09/15/news/companies/AIG/index.htm

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[TWINTOWERTRUTH]

I posted a video here on Youtube called "the REAL reason why the economy is collapsing"

I highly recommend watching it. It takes us back to 9/11 and connects the dots!

[harryguitarjackson]

The banks system put its faith in fides and she only sells trust,this is what happens when you serve this pagan goddess.God told people not to go whoring after pagan gods. Fides goddess of trust,her temple on capotiline hill,one of the seven hills and highest of Rome,she kept watch over the senate,she is what your governments put there faith in,as they did not understand,( because of there greed ) the difference between. Trust and Faith.

Faith and God

[yot5000]

maybe that is why nobody has noticed that the USA is now a Socialist Goverment?

Socialist for the rich thats a new one lol

[MMcKyle]

A good, basic overview of what this mess is about. Unfortunately, is doesn't stop here. Much more pain to come.:(

[fergus247]

Lol that is too easy on this channel. No one views it, if everyone did we wouldnt have these problems :)

[bigbadwolfnigger]

first