by GarySpicuzza » Sun Feb 15, 2009 08:29 pm
This thread is to keep track of the dead insurance companies.
These companies are dead because they violated sound insurance company risk management or sound investment strategies.
#1) AIG
#2) Standard Life Insurance Company of Indiana
#3) Shenandoah Life Insurance of Virginia
These companies are dead because they violated sound insurance company risk management or sound investment strategies.
#1) AIG
#2) Standard Life Insurance Company of Indiana
#3) Shenandoah Life Insurance of Virginia
Posted: Sun Feb 15, 2009 09:23 pm Post Subject:
AIG is _much_ more then an insurance company. Actually the insurance portion of their business is sound and doing quite well.
AIG as a whole has about 1.1 trillion in assets. Your link points out that they took an $85 billion loan. Plus, it's 6 months old. That loan was needed as they simply could not convert enough of their assets quick enough order to save themselves from the mortgage crisis. 1) AIG has PLENTY of assets to address any concerns and 2) their insurance companies are doing just fine.
Posted: Sun Feb 15, 2009 11:06 pm Post Subject:
tcope your point is well taken and AIG may very well pay back the:
$150,000,000,000 billion dollars in total they borrowed from the United States of America.
AIG would be in bankruptcy court right now if the Federal Gubment didn't save them.
Click HERE to read more about the now infamous AIG.
"We cannot continue to hemorrhage cash in the two areas of securities lending and credit default swaps," Chief Executive Edward Liddy said on a conference call. "We need to stop that, and we need to stop it now."
AIG posted a quarterly loss of $24.47 billion, or $9.05 per share, compared with a profit of $3.09 billion, or $1.19 a share, a year earlier.
Revenue fell to $898 million from $29.8 billion, reflecting the write-downs. AIG also had $1.39 billion in catastrophe losses, primarily from Hurricanes Gustav and Ike.
Credit default swaps led AIG to $18 billion in losses in the nine months ended June 30.
Posted: Mon Feb 16, 2009 11:06 am Post Subject:
read more about the now infamous AIG
I don't know about THAT statement. I've read several articles on AIG. Their still 'alive and well.' I have a few friends who have them for auto insurance....there pretty satisfied with AIG's service.Posted: Mon Feb 16, 2009 11:17 am Post Subject:
$150,000,000,000 billion dollars
Garry, i think this figure is $ 150 billion only Not $ 150,000,000,000 billion.
correct me if i am wrong.
:?: :?:
Posted: Mon Feb 16, 2009 12:30 pm Post Subject:
Gary..
AIG would be in bankruptcy court right now if the Federal Gubment didn't save them.
Sounds interesting...how did they save them after all!
Posted: Tue Feb 17, 2009 12:32 am Post Subject:
amit,
The purpose of writing out $150,000,000,000 billion dollars rather than $150 billion dollars is a matter of literary style. $150,000,000,000 billion dollars written out gives the reader the visual of just how much money that is.
I understand the point you're making.
Writing out $150,000,000,000 billion dollars could give the impression the number is $150 billion - billion but I don't think most people would think I meant $150,000,000,000, + 000,000,000.
AIG would be in bankruptcy court right now if the United States Federal Government had not written them phony checks totaling $150,000,000,000.00 dollars.
A USA government check can't bounce.
The USA government is the "Goldsmith" referenced in THIS THREAD titled Banking and Legalized Fraud.
Please read that thread in its entirety
Then re-read that thread until you understand that the only reason a $100 dollar bill is more valuable than a $5.00 bill is because of the way the picture and ink is arranged on the paper it is printed on.
It costs exactly the same amount of time and effort, exactly the same amount of material is used and exactly the same amount of man hours to produce the $100 dollar bill vs. the $5.00 bill.
That said, writing a phony Gubment check, and then calling THAT a "loan" to broke and failed banking institutions and investment firms, to AIG and to the auto industry and others.......is out right financial fraud.
The USA government "prints" money by way of writing a check, then that check is deposited into the account of the broke institution....let's say...AIG who then uses the monopoly phony money for its needs.
Posted: Tue Feb 17, 2009 07:23 am Post Subject:
Recently I've come across a news where it says that AIG is struggling in paying back the money they have taken from the Fed. In fact they are trying hard to repay the support that they have received from the government to keep it away from their operation. Recently AIG has encountered with the objection from the House on spending money on the employee retention scheme. I wonder what would be the outcome if the tiff deepens.
Posted: Tue Feb 17, 2009 07:25 am Post Subject:
Gary..I don't think going ahead this way AIG would be able to save its face..if one part of the body is rotten, it might as well spread over to other parts- I mean the insurance companies!
Posted: Wed Feb 18, 2009 04:31 am Post Subject:
hey garry i got your point and the thread which is related to banking system is really a superb information.really loved it.
Even there is a system in the bank that bank can lend up to 10 times of their deposits.
suppose someone has kept $ 1000 in safe deposits with a bank, then bank may issue up to $ 10,000 to different borrowers ( again its paper cash ) so even few of them really pay back with interest surely bank will be in profit. they just need to keep some ratios intact to keep their business growing.
:wink: :wink:
Posted: Thu Feb 19, 2009 11:20 am Post Subject:
Amit you're a very smart person and a quick study.
Amit wrote:
suppose someone has kept $ 1000 in safe deposits with a bank, then bank may issue up to $ 10,000 to different borrowers
That's known as the fractional reserve banking system and it is nothing more than leveraged FRAUD.
The banks have $1,000 for every $10,000 dollars they loan out.
As bad as that is, the banking system in more exponentially leveraged than just that.
The ten people who got the $1,000 loan in your example does what with the money? They either spend it or put it back in a bank. Either way it gets back to a bank somewhere. Now those ten other banks reserve $100 of $1000 and will loan out $900 to ten more people.
This is why banking is legalized fraud.
From the original $1,000 deposit $10,000 was loaned out to ten different people ($1,000 each) from those 10 loans - ANOTHER $9000 was loaned out to ten other people for $900 each.
If we just stop there that means $19,000 is borrowed money on $1,900 of which only $1,000 was actual cash on hand in the first place! The money held in reserve for the subsequent loans has already been leveraged once and now twice.
I'm going to stop here but that process continues with the $900 and so forth. As a result our paper money, backed only by the full faith and credit of the USA government, is leverage about 30 to 1 by the time it's all said and done.
That means for every (one) $1.00 on deposit in the banking system there are (thirty) $30.00 dollars out in the street in the form of borrowed money.
All fiat monetary systems eventually collapse because by "Administrative Decree" the government creates massive amounts of phony money out of thin air by way of "printing" checks.
Which brings me to the last three (3) people left on Earth.
#1) Bernie Madoff has one once of gold;
#2) Ben Bernake has $1,000 paper dollars;
#3) Sarah Palin has a hunting rifle.
Hmmmmmmmmmm, looks like two of the three are going to starve to death.
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