I would cut my rating of AIG price at this level is only to HOLD.. as more carnage coming around in the financial sector in the next 9-18 months, AIG might drop lower to $1.00~$1.25, then it is a BUY.

Financials stocks ARE NOT for the faint of heart at the moment.

If you have money to dump and wanted to risk it, it may be worth the ride if you can pick the right one.

Personally, I don't think US itself will go into Depression again.. I bet no one here was born during that era and will won't really know in reality how bad they felt that other than reading from their history. Malaysia wasn't even born yet. They already knew it, and have their infrastructure in place avoid it but since it is global effect, US may not be able to stop the fallout elsewhere from happening in other countries.

I think US will have a longer recession than expected.. something like 18-24 months instead of 6 to 9 months like last time Dot Com bust. They would need this amount of time to purge out all the toxins in their financial system.

US govt has yet announce their 3rd quarter GDP report (due by Oct/Nov) but expected to be a negative growth from last quarter, but even at this number technically it is not under recession yet until they get their numbers again in January/Feb 2009 and of course.. by that time, everyone already should have felt it. Their job markets dry up, unemployment goes up (may hit 10% or higher), our Malaysia exports to US go down (our factories may have to lay off workers due to slow down because we exports a lot to US), then it is Malaysia turn to have recession. As usual, we always seems to know only AFTER the fact or the rest of the world had it.

Since US economy is consumption based, they'll just consume less during lean times but Malaysia could be f**cked pretty bad if ours tanked like theirs. Hopefully, we won't end up like Iceland.

This post has been edited by danmooncake: Oct 12 2008, 12:40 AM

At least, it is not as bad as Zimbabwe Dollar... now that's really worth shit.

For US and other countries financial problems, they will look towards Asia for their medicine.
Yes, Asia is the where their backer will be especially China and Japan.
They have plenty of cash in their banks.

China is willing to cough up enough cash especially they wanted more US assets.
They love 'em and Uncle Sam has no choice but to sell 'em to China - properties, oil refineries and especially technologies.

Yes, that's will definitely accelerate China to be the number one economy in the
world in less than 10 years.

This post has been edited by danmooncake: Oct 12 2008, 10:23 PM

True.. but it is a US company now and in trouble. They can sell it back to China if needed and China
can buy it cheap, turn it around and make more money.