9/15/8 Special Weekly Report - Game Over!

I am totally naive about economics and I really need for someone to tell me if I need to be genuinely worried. I have a (very meager) bank account with Wamu and I have my car insurance through AIG. I'm not over reacting yet, I just want to know if there is something I should be doing just in case.

Please help...

reply to post by nunya13


I'm no expert by any stretch, but I'll take a stab...

if you have any investments, including retirement..it has probably taken a hit (lost value). AIG was bailed out, so for now at least you will still have insurance..even it it did go bankrupt, not sure how that would effect car insurance..you might want to call and ask a rep about any provisions they have or even consider switching to a more stable company...I think this bail out is only going to drag out the demise, we'll see what happens.

Worse case scenario; all these big companies belly up, foreign companies have big holdings in them so they dump all the US dollars invested (sell their shares or just loose big time)..in any case the US dollar takes a nose dive..consider the Yen being worth more then the dollar, ouch..

Now it cost a company like Walmart 100 bucks for a wash cloth...

Due to all the lay offs, consumer sales plumet, companies loose even more money, there is no more 'credit' or 'bail outs' to make them last...more lay offs followed by more bankruptcies and more lay offs..The Fed can keep printing 'fake' money, but now everyone in the world knows its worthless

During all of this people are making runs on the banks trying to get their cash, eventually there isn't any more cash to be had from the banks...

As things get more out of control people start to riot for food/money...

Now we enter the realm of a National Emergency, curfews, National Guard and Blackwater in the streets...we also know now why all the internment camps were built...where else are all the broke and homeless going to go..

Now that our money is worthless, there are a lot of very mad countries at us, because we owe them for all the money they loaned us to keep our 'machine' going...we are now more vulnerable to outside attack and unable to assert our influence in the world. See aggressive countries making moves all over the globe...and possibly domestic attacks (at least terrorist)

I'm sure this is all 'worse case'; but I have no doubts our Government at least has contingency plans for it

What happened with AIG last night (essentially the Fed gave them a "bridge loan") has the potential to impact ALL financial firms in a big negative on the investment side.

If you have investments in financials right now, well, let's just say I wouldn't be sleeping well at night.

For more info, see Karl's take on it here:

AIG Rescue

From market-ticker.denninger.net

More AIG News Links:

Asian Markets Reaction

The Bailout



[edit on 9/17/2008 by Relentless]