Its all games to hold up financials. You tank insurers and financials this baby free falls. It will fall like a boulder into oblivion. There is no way it keeps going up without manipulation from you know who. Maybe its just the G.for short. Oh yes I wouldnt be surprised. But it doesnt matter it will tank because it has sold off so much valuable stuff already. It is just short covering here. The whole market is being manipulated with oil/commodities to start mornings then bringing up everything else with jumping in. Wake up people this will end badly like the last bubble of 2000 cheap money. Thank you Bernanke it will be your fault with manipulating people into markets because no return in money markets that were safety of principle.
I don't think anyone knows if it is definitely worhtless, but I do think this "call option" is way overpriced at these levels. Here is what I see:
-After the pending crown jewel asset sales of over $50B, there will still be $50B in debt owed the Govt.
-This 5B market cap is so misleading- it should be fixed on Yahoo. It is the public common that trades at 5B. But in addition to the 50B+ owed the govt. in debt even if all of these asset sales go through, the Govt. owns 80% of the equity. So the current equit value with the stock where it trades currently is something like $25B.
So at these prices, the market is saying that after all of the asset sales, AIG is worth 50B in debt and 25B in equity- or 75B. I don't think so, so I would be a strong seller. But nobody knows for sure, that's what allows these short raids.