Well well, almost 1am, and some breaking news that BBC News is also about to release: The US Federal Reserve Bank “in full collaboration and with the support of the US Treasury Department” is going to throw a buoy out to AIG Insurance.
Essentially, they’re offering a USD 85,000,000,000 (ok, $85B for the playas) protection package for AIG… buying them time.
Interstlingly enough, Henry Paulson (numero uno at the US Treasury Department) did not want to extend a similar cash insurance for Lehman Brothers. I suppose the latter players’ golf round did not wind up the same…
My take: this is to shore up the US stock market, which is .. to put it mildy … in a state of shellshock. Will this quell the selloff currently underway? Not so sure…
Folks: follow the words of teh Berkshire Hathaway guru, and remember that Mr. Buffet loves longterm investments. At this very moment, I am certain he is guiding further acquisition of many depressed stocks.
Trick is: which ones?
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