ajtj99's Market Pulse

[ItsAllCyclical]

I'm hearing more talk that since AIG's insurance side is well funded the financial system as a whole can tolerate AIG going under better than it's size would suggest. That may be true but I'm sure not the markets can survive AIG and LEH going under in the same week. If AIG goes down I think it puts more pressure on the Fed to cut aggressively. If AIG can be saved (or at least delayed) then the Fed may be able to get away w/just changing the language. We'll see. Right now it's looking like AIG is going down this week and the Fed may just change the language and nothing more. Cutting 25 basis pts would do nothing (even though it's priced in).