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AIG rescue
SupportiveArgument
1
#7015
Money Market Mutal Funds concerned that if AIG one of the world's largest insurers needed to be rescued, no company could be assumed to be safe.
CONTEXT
(Help)
-
The Global Financial Crisis »
The Global Financial Crisis
The Global Financial Crisis☜Exploring the causes, consequences and responses to the global financial crisis. ☜F1CEB7
▲
Immediate triggers of the financial crisis? »
Immediate triggers of the financial crisis?
Immediate triggers of the financial crisis?☜What were the immediate triggers of the current financial crisis?☜FFB597
▲
Sudden evaporation of market confidence/trust »
Sudden evaporation of market confidence/trust
Sudden evaporation of market confidence/trust☜Confidence/trust in the ability of others to pay debts suddenly evaporated from the market: with the result that few are willing to risk lending any one else any money.☜59C6EF
▲
Commercial paper market froze up suddenly »
Commercial paper market froze up suddenly
Commercial paper market froze up suddenly☜The commercial paper market froze up suddenly.☜9FDEF6
▲
Money Market Mutual funds moved into Treasury Bills »
Money Market Mutual funds moved into Treasury Bills
Money Market Mutual funds moved into Treasury Bills☜The ultra-conservative Money Market Mutual Funds withdrew $100 Bn from the commercial paper market across two days (in effect an old fashioned bank run) and put most of it into Treasury Bills (perceived to be the safest haven amid the uncertainty).☜98CE71
▲
Money Market Mutual Funds spooked »
Money Market Mutual Funds spooked
Money Market Mutual Funds spooked☜Money market mutal funds—like a savings account, offering small safe return from lending to huge trusted companies that have been paying back the loans for decades—lost confidence in the market.☜98CE71
■
AIG rescue
AIG rescue☜Money Market Mutal Funds concerned that if AIG one of the worlds largest insurers needed to be rescued, no company could be assumed to be safe.☜98CE71
●
AIG on hook for $400bn credit default swaps »
AIG on hook for $400bn credit default swaps
AIG on hook for $400bn credit default swaps☜AIG was about to go bankrupt because it had promised over $400 billion to people holding credit swap defaults with them on, among others, Lehman Bros—$400bn that the company didnt have.☜98CE71
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Entered by:-
David Price
NodeID:
#7015
Node type:
SupportiveArgument
Entry date (GMT):
10/6/2008 9:39:00 PM
Last edit date (GMT):
10/6/2008 9:39:00 PM
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