The Government Bails out AIG

Looks like the United States Government finally realized the financial mayhem that would have been caused if it would have allowed AIG to fail. The government decided to bail out the large insurer by offering them an $85 billion short-term bridge loan.

I guess now most people are wondering why the let Lehman die and not AIG. Well, the answer is obvious. Lehman just doesn't matter. Too many firms worldwide have exposure to AIG and imagine the collapse that would come if it would have failed. Yup, lots of payouts of credit default swaps. Hey, let's not forget that it was the repo market that ultimately put the bullet in Lehman's head.

Well, Uncle Sam, you've saved the world for now . . .

GOD BLESS AMERICA!

LEHMAN BROTHERS IS DONE!!!

Barclay's recently announced that they are walking away from talks to purchase the ailing investment bank. Now, with no purchaser, we could be awaiting a market meltdown in the morning.

Curious to see how this plays out . . .

Computer Meltdown Stymies Japanese Stock Market

The Tokyo Stock Exchange was shot down for several hours on Tuesday due to a computer malfunction.

Trading was suspended from about half an hour past nine to almost two o’clock in the afternoon. Mostly the trading of derivatives and futures was halted by the Tokyo Stock Exchange as a result.

The Wall Street Journal reports that this was the third meltdown this year and the current computer system is expected to be replaced next year.