Wednesday, March 11, 2009

AIG madness

Being in insurance, I have been following AIG. A few months ago, its stock was $52/share; then about a month ago it was $2/share. After putting in about $150 billion into AIG (and now the fed owns about 75% of it), the stock went to 35 cents.

When the feds added another $30 bil at the first of this week, it went all the way to 42 cents.

Plus, there is a strong possibility the feds will put more money into AIG, even though they admit that they're not sure where all of the first 100 billion went.

If you divide the 150 bil by our total population of 300 million (including a large number of children and people who do not pay taxes), you get $500/person or $2,000 for a family of four. I have two questions (A) Is my math right? and (B) Have we lost our minds?