BANZAI7 NEWS--Shares of American International Group Inc. continued their volatility Thursday, rising as much as 34% on top of Wednesday's 63% gains, before scaling back their climb.
This makes good sense owing to all the positive news we keep hearing about AIG. Their latest CEO throwing his hands in the air and quitting, chronic inability to quantify derivative downside exposure, policy renewals down, losing spurious litigation, junk bond ratings for key units, three card monty style asset shifts between operating subs, asset sales not proceeding smoothly, bazillions of government debt to pay down. The shares were clearly under priced.
What does the market "know" about AIG? Well, if you have an invested 401(k) sitting around and did nothing during the past 6 months, you probably noticed in your July statement that it went up thanks to the bailout bull's tremendous run. Stands to reason a beached bailout whale like AIG should float like the rest of the pod as long as its assets are not 100% invested in money market funds.
So the price of AIG has risen with the rest of the junk rated companies that have risen from the dead in the bailout bubble. Which will no doubt send the markets rising yet higher.
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