American International Group, Inc. (AIG)

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Allstate's king... Liddy, versus Jim Cramer. This ought to be a good one. Allstate leaves Sears and does its IPO under Liddy's guidance and direction. If anybody can pull AIG back from the brink of insolvency and indentured servitude to the government and get it back to stability, it's looking like Liddy could.

Remember, the government's potential stake with regard to the warrants is a common stock situation stake. So if the government is going to see that the taxpayers have every chance to make money if AIG can't pay back the loan in time, it makes sense that a bankrupt company would not fill the bill. Common shares are usually worthless in a bankruptcy. So it would only be logical that the government wouldn't be wanting to take a common share stake if it thought the company would BK and leave their warrants nearly worthless. Little by little this is looking better and better.




JMHO DYODD