When we first started writing Mortgage Blues we knew there would be an economic fallout. We did not know what the world’s biggest quarterly loss would look like. How does one imagine the biggest quarterly loss of any American company ever seen?
Not that one feels sorry for the ignorant partying fools, but AIG made history today. Retreats aside, American International Group Inc posted a record $61.7 billion quarterly loss on Monday and got a new but not necessarily final government bailout, after officials concluded again that letting the insurer fail would threaten the world financial system.
Speaking on a conference call, AIG Chief Executive Edward Liddy called the market “a pretty crummy place” right now, and said fixing the insurer could take “several years.” My insurance payment is due today, and I don’t think my insurance company will give me a few extra years to make the payment.
What I do know is that if I ever file a claim it will be delayed, rewritten, rejected, and refiled. I will be asked to sue my auto insurer, the city, and possibly my homeowners policy. I will be tasked with doing all the work, or I will be the one at fault. Do I feel sorry for AIG? Absolutely not.
Am I astounded that AIG is in a position to be a “TBTF” (too big to fail)? Absolutely!