Replies to post #127102 on ajtj99's Market Pulse

[ajtj99]

The problem is the credit default swaps AIG is holding combined with the bad paper make the entire entity insolvent.

Add in the counterparty risks and you've got a basket case.

They'll need time to sort out this mess.

On another matter, did you notice how WFC announced it had was writing off $50-million in counterparty exposure to LEH, and they're up over 10% as a result?

That's Warren Buffett's influence on the counterparty stuff, IMO.