Can you hear the splashing of water? That’s AIG trying to stay afloat, reaching a new low of $4 a share. Wow!
So AIG is seeking some relief, the feds are in and even Cramer was saying we should help AIG because of the insurance policies. Yeah, save the policies, not the company. The government should look at bailing out the policy holders, not AIG. After all, AIG is the one who screwed up, not the policy holders! So why help AIG who has proven it doesn’t know money.
Look, before AIG gets help, it can help itself by doing a few simple cost cutting measures.
- Eliminate all perks, no corporate housing, no cars, cut back on everything and anything. You’d be amazed what you can save when you do that.
- Cut salaries by 50%, I know, drastic, but not like you got a lot of options right now.
- Sell off assets. Lets face is, someone will buy up prime divisions, why not make some money and give investors an out, after all that’s your charter.
These simple measures would save the company in the short term, long enough to help what is left to move up again. But I am sure as usual, they will want a bailout, the feds are involved so you that’s on the table. I say no to a bailout. Investors get hosed and management gets away with murder! Management needs to be the first ones to feel the hurt, that is in the interest of investors, put a flame under their ass and get them to work for their money. Pay for performance should be implemented. You want that six figure salary, put up the numbers! That will trim the fat real fast.
AIG should go the way of Lehman’s and then let the feds step in and save the policies. Management at all levels has not done their job and should not be saved.
BTW, thanks everyone for visiting, a new one day high was reached today.