I promise, my last fiancial post.......

There are two comments out there one on the latest post, I spy, and Oh by the way. I am quite sure these morons work for AIG. How can I tell???? First off, they did not proof read their comments. Their should be an apostrophe in Mutual's, but alas there is not. Just another point as to how incompetent their staff is. Oh, and with regard to the I have AIG envy. I was not going to even qualify that remark, but the idiot must have wrote this response thinking that the bailout plan was going to be a slam dunk on Thursday.

The only thing I have is a hate for idiots. Salesmen should never be in charge of a major corporation unless they have more than enough business acumen to fill a thimble.

With regard to my employer, the funny thing is that they are currently at an all time high with regard to sales thanks to the Laurel and Hardy show that is now airing on Wall St. So as usual, I appreciate your concern for my well being, but I am doing quite well. While all of the (CE Blows) on the street are going to see that their collective golden parachutes are going to be missing a few important strings, perhaps they can watch Bear Grylls and figure out a way to land safely. If they need a reference, maybe they should consult Latrell Spreewell. He couldn't seem to find a way to get by on $6 million a year.

Oh, if you are going to post a comment to my blog in the future, could you please mix in an owner's manual and post to the correct story that you have something to say about. I feel as though I am cleaning up after my three year old kid. At least I love my kid and don't care about the mess they make. It isn't going to cost the U.S. taxpayers $700 Billion.


Ahhhh....the beauty of being right.

I Spy With My Little Eye......

I was fortunate enough to attend this past Monday night's football game between the Jets and the Chargers. Yes, I know I am a loyal and lifelong Jet fan, I know they lost badly, but I have to say that it was an experience of a lifetime. The sellout crowd was energetic, they too were loyal. Although I wore my Curtis Martin Jersey to the game, I did not feel like neither my nor my fiance's safety were in jeopardy.

Sure, I caught some boos, some jeers and some thanks for coming serenades, but in the end I learned a lot about my beloved team.

There were times that the Jet's run defense looked awesome, the passing defense......not so much. The Brett Favre led offense looked, at times, great as well. If the Jets would have run for more than 50 yards, it might have been a better/closer contest.

I still feel strongly about the Jet's chances about getting to the playoffs, only now, it is due to the fact that the rest of the AFC looks a little weak. The Broncos look tough, the Bills look awesome, the Ravens are good, but still a little too old. We shall see about the Titans, and the Colts are due to make a comeback.

I also strongly believe that it is time for "Mangenius" to let Brett take control of the game. He is going to make some mistakes, but I believe that those occurrences will be far fewer than his successes.

Mark my words....if the Jets are 7-4 after week 12 of the season, they will make the playoffs. Is this a guarantee???? Absolutely not, it is an educated statement.

To the Charger fans that let me play catch with them after the game in the parking lot, and took the time to stop and make small talk with me......Thank you for showing me that we are all brothers, and our only difference is the colors of our favorite team's jerseys. I shall never forget that night for the rest of my days.

Oh....to the male fans out there. I would be remiss if I did not mention that the Charger Cheerleaders are way hotter in person than they appear in pictures. I apologize to the female readers, and of course my awesome fiance'. I love you dearest, and thanks for a great birthday present.

Ahhhh.......................... the beauty of the gridiron faithful.

Oh, just one more thing.....

My first day in my upper division Managerial Finance class included the statement "The goal of management is to "maximize shareholder equity".

Below are some comments regarding the shareholder equity along with the explanation as to why the FED lifted it's skirt and bailed out AIG. Enjoy the reading........HA HA HA!!!!!

Given that AIG had a market cap of 10B today, how is paying 85B for 80% a good deal? Oh, and let's not forget that they were offered a private buyout and turned it down. And 80% of their insurance business is outside the US. If the biggest investment banks didn't want to put money into this zombie, why on earth should the Fed?

If it really were such a sweet deal, a private loan would have been arranged relatively easily- that one could not be arranged strongly suggests that the loan is a losing proposition.


What truly puzzles me is how the creditors take a haircut without a bankruptcy declaration. If the creditors don't take a haircut, then this is just another bailout of bondholders. And, where in line does the Fed stand in the creditor queue?

It's because there is something profoundly, fundamentally wrong with how we operate in this country. Economy: We're doing it wrong. Maybe, the weird amalgam of capitalist rhetoric, government intervention, constant bullshit from politicians and pundits, stagnation for most people, bankruptcy for too many, incredible and growing wealth for a very few, maybe we need to get off that treadmill. And maybe these bailouts are both a symptom of the problem and an opportunity to rethink how we do things.

Scrapping together 85b on short order, in the current environment, may well be beyond the grasp of most any institution but the Fed at the moment.


As for the worth of AIG, my understanding is that the reason they need the bridge loan is that they're not going to be able to liquidate their (from what I understand substantial) assets soon enough to cover the increased capital requirements necessitated by the downgrading of their credit rating.

AIG agreed to accept $85 billion in government financing in exchange for warrants representing 79.9% of shares. The $85b isn’t payment for the shares - rather, it’s a loan, which accrues interest at Libor + 850 basis points (currently totaling over 11%).

So the good news is, AIG will definitely survive, and they have plenty of assets to sell to repay the loans. The bad news is that current shareholders will be substantially diluted.

From the FED:

The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under Section 13(3) of the Federal Reserve Act. The secured loan has terms and conditions designed to protect the interests of the U.S. government and taxpayers.
The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance.
The purpose of this liquidity facility is to assist AIG in meeting its obligations as they come due. This loan will facilitate a process under which AIG will sell certain of its businesses in an orderly manner, with the least possible disruption to the overall economy.
The AIG facility has a 24-month term. Interest will accrue on the outstanding balance at a rate of three-month Libor plus 850 basis points. AIG will be permitted to draw up to $85 billion under the facility.
The interests of taxpayers are protected by key terms of the loan. The loan is collateralized by all the assets of AIG, and of its primary non-regulated subsidiaries. These assets include the stock of substantially all of the regulated subsidiaries. The loan is expected to be repaid from the proceeds of the sale of the firm's assets. The U.S. government will receive a 79.9% equity interest in AIG and has the right to (veto the payment of dividends to common and preferred shareholders. )

Ahhhh... the beauty of the American taxpayers taking large one where the sun doesn't shine.

My Point Made Through the Ignorance of a Response

Please, I beg you please read the comment posted to the blog about AIG and how it has crapped the bed. Yet another mental midget within the AIG "BRAIN TRUST". More like brainless trust has made a completely idiotic statement. At last you can see what I am talking about for yourselves.

Psychology is a beautiful science because it takes a good look at what is going on inside the brain when we make or decisions as human beings.

Our wonderful mystery guest copied and pasted a news wire synopsis of what AIG is currently going through. I really do appreciate that, but I believe that some lower level employee on the corporate food chain wrote/sent this. It looks like they think that AIG can explain away it's incompetent managerial and executive team's shortcomings.

Here is the million dollar question....why aren't the real powerhouse insurance companies experiencing the same cancer that AIG is? New York Life, MET LIFE, John Hancock et. al.? Please don't try to insult my intelligence and say that you are getting to big. That's not what you tell your loyal employees. It's the old, we've had a good year, but not quite good enough. Perhaps you are still trying to dig yourselves out of previous holes you've been in (please see Wall St. Journal Archives). AIG could have it's own episode of Judge Judy with the crap they've been involved with in the not so distant past.

Perhaps it is because the real insurance companies run their businesses in a respectful manner. Instead of looking for the quick buck, they actually care about their policy and share holders.

On any given day in the current market, "REAL" Insurance Companies have enough market and reserve capitalization to cover all of the face values of their "in effect insurance policies". Apparently, AIG decided it would stick their collective toes into a highly speculative, high risk mortgage lending product. That's fine, you gambled with other people's money and lost really really badly. Now that the US Gov't has bailed out AIG with $85 billion dollars worth of taxpayers money, how does AIG expect the public to forgive them for SCREWING up so damned badly?

Oh....and by the way, the interest rate on the $85 billion loan, if I am not mistaken, is in excess of 11%. If the government thinks you are a collective bunch of fuck ups based on that interest rate, why shouldn't the public.

Oh, by the way, the poster of the comment did not speak as to why the SR. VP of Investment Investment Advisory Services did not proof read their own bio.....it figures. No big picture, no short term picture, just sell. I wish AIG were a really bad joke, but unfortunately, they are real. What a shame.

P.S. If AIG is OK, why were there massive lines in Southeast Asia looking to cash in their policies.

Ahhhhh........the beauty of once bitten, twice shy.

The Strength to Go Bankrupt

>>>>>>>Or Crap the Bed

I love it when I don't have to write a word on my blog. It saves me from getting carpel tunnel syndrome for just a while longer. While I am sure that most of you have noticed that Wall St. had a really bad day yesterday, some of the corporations that trade on the NYSE had a much worse day.

You might ask how does this fit into the world of sports? I say it's very simple. If you look to the international soccer league, you will find that there jerseys display the AIG insignia. If you go to most any MLB Park, you will find the sign above hanging on the walls of many of them.

I just wanted to throw my two cents in regarding this two bit piece of manure of a company such as AIG (aka. Assholes In General). There corporate officers have near zero business acumen, all they want their people to do is sell. There are other employees that have nothing better to do than sell their souls just to squeak by as a mediocre businessperson at best. I am including a story from today that was on the news wires. Please read and enjoy.

AIG gets NY state help to hold off cash crunch.

A complex asset swap brokered by New York state officials will give embattled American International Group a $20 billion lifeline, but the insurer's longer term rescue plan will depend on additional funding. JP Morgan and Goldman Sachs are exploring putting together a syndicated $70 billion to $75 billion credit facility for AIG, among other options.

The banks' efforts are supported by the Federal Reserve, which AIG appealed to for assistance late on Sunday. AIG turned to the Fed after unsuccessful negotiations with several private equity firms and Warren Buffett's Berkshire Hathaway.

AIG's troubles, much like those of some of its Wall Street peers, stem from guarantees it wrote on mortgage-linked derivatives that have left it with a total of $18 billion in losses over the past three quarters.

AIG in recent days has explored a wide range of options to shore up capital and avoid rating cuts, but two of the leading raters downgraded AIG, anyway.

Oh, by the way, this is how he writes.

Bruce Levitus :

(Sr VP/ Managing Director for Investment Advisory Services at AIG Advisor Group Bruce Levitus: "I am working a hiring the best VP of Quality Assurance possible. Bringing back the master of V2Aa")

Yes, that's correct, he can't even proofread his own bio and objectives. AWESOME!!!!! Please let me put all my money in whichever company he is running. I always thought UMass Amherst was a good school. HA HA!

In summation, if Warren Buffet (a highly speculative investor doesn't even want to get involved) that can't be good long term. I believe that business and profits should not be derived from hard working people that put their trust in some financial advisor that only cares about lining his or her own pockets. Their clients have kids they need to put through college just like they do. I can't say I am broken hearted about the near collapse of AIG, but I would be upset if a legitimate and caring company were to go down. There are far too few of them in this world.

Ahhh...The beauty of poetic justice, and the 1st Amendment of the US Constitution.

Shea..... Goodbye My Friend

I wouldn't normally be so emotional about the tearing down of an old and decrepit stadium, but this is different. I have to say that with only 6 more games, and hopefully the playoffs, the field that I adored as a child and actually had a chance to pitch on while I was in high school, will soon be nothing more than a memory. Excuse me, memories.

This is the place where I found my first love, baseball. This is the place where I experienced joy and jubilation (the 7th game of the '86 World Series). This is the place where so many of my personal dreams began. It will sure be hard to say goodbye.

The not so good memories will forever remain in my mind as well, such as the '00 world series, Larry "Chipper" Jones named his 3rd child after the field because of his great successes there as an arch rival.

The broadcasters of yesteryear, Bob Murphy, Lindsey Nelson and Ralph Kiner. No matter how bad the Mets were, you always knew that they were rooting for the home team.

Let's not forget the many concerts held there. The Jets used t0 call Shea their home as well. No matter how many faults the stadium had, it was still a place for history, and that, no one can ever take from us.

Goodbye to Shea Stadium, I will not forget you as long I live.

Ahhhh the beauty of a long standing relic having the chance to rest in peace.

Deep down inside, we are all the same

With the presidential election just 54 days away, I wanted to speak my mind regarding the candidates for the job. There have been a ton of negative things said between the candidates, I guess we should consider that the norm. I hope that we as a nation, the richest, most powerful nation on the planet, can see past the crap, and make an intelligent decision as to who the next leader of our country should be.

Please don't base your decision on the candidate's color, race or religion. After all, we as a nation are guaranteed those choices to do as we please by those that have come before us. I have listed above three different shoe and apparel companies. You may ask yourself why? Well to be perfectly honest with you, I felt that it was the best way to try to tie my message in with an athletic connotation.


When we buy our shoes, why do we buy them? We should buy them because they fit the best. I felt that to be a compelling argument as to who we should choose as our next commander in chief.


We should pick the candidate that fits us as a country the best. We shouldn't choose Reebok because that's what Allan Iverson wears, we shouldn't choose Nike because that's what Lebron wears, nor should we choose Adidas because that's what Steve Nash wears. We need to pick the right candidate because they will fit and perform for us the best. Please keep that in mind when you cast your ballot. The decision we make will stay with us for the next four years.

Ahhhh...the beauty the best country in the universe.