The futures markets are pointing to another lower opening. In fact, the Dow could open below 7000 this morning for the first time in nearly 12 years.
The big news weighing on the market is that the government is giving American International Group (AIG) another $30 billion in taxpayer money. The insurance company is expected to report a loss of $62 billion. That’s an astounding figure. Very few companies are worth that much. In fact, very few companies have ever been worth that much.
If throwing tax money at AIG sounds familiar, you’re right. This is the fourth time Uncle Sam has bailed them out. Thanks to previous bailouts, the government (theoretically, you and me) already own 80% of AIG.
As I see it, the company is certainly American, even though it’s not international or much of a group anymore.
I’ve had this stock rated as a Strong Sell for several months. AIG closed last week at a measly 42 cents a share. That’s a 99% drop in 10 months. Don’t go near this stock!