AIG got bailed! *whew*

[craftyfool]

 However, I'm looking to see where I can come up with a few more bucks to put in to my retirement fund while the prices are low.

THAT IS SMART!  I know it's scary...but honestly, economists will always tell you...BUY LOW, SELL HIGH.

Look at the history of the stock market and you'll see it goes down...but it always goes back up.  The down part is scary as heck, I agree, but if we just sit tight and ride it out, we'll all be better off in the long run.  It only gets worse if people panic.

For those super close to retirement...your funds should have been transferred primarially to money market awhile ago anyway or else you are just not risk averse, in which case, you are probably thinking "this is fun".  (that is not me, btw...)

I sure am full of it today...someone must have put something in my morning java...

[ArmyWife95]

 It was safe even if they had not been bailed out.  The government has ALWAYS required the insurance companies to have enough cash on hand for pay outs as needed.  The AIG problem was more on the investment side.  Meaning that those who invested in AIG stocks were SOL if the government hadn't bailed them out. 

[unkit]

true.  buy low and sell high. but.... and this is a big but, if you are investing short-term, I would not drop a dime into the market right now.  If you have 15-20 years, sure.  well, maybe not "sure"

I have been investing in the stock market for a long time, and am retired from the corporate financial world.  but this market makes even me skiddish.

it is conventional wisdom that as your retirement draws nigh, to shift your portfolio to less risky investments. 

Just so relieved to hear that my parents actually took my financial advise (for once, lol) 

re:accounting industry   I definately see a review of current reporting standards, regulations, and securities ratings.   Job security for the accounting field.

[craftyfool]

true.  buy low and sell high. but.... and this is a big but, if you are investing short-term, I would not drop a dime into the market right now. 

I totally agree!!!!! 

[unkit]

 Robin, just read your post.
true.  the big problem is/was with AIG Financial.

I am not sure if I grasp this part, but aren't the s/h'ers screwed?   Even with the Govt. assistance.   with the way the "rescue" is structured, don't the shareholders basically get nothing?  they are the BIG losers in this situation.  (or that was my understanding.  need to read WSJ and watch tv tonight)  Greenspan, the former CEO, seemed to be critical of this ascpect of the agreement.

Please tell me what you think.

[craftyfool]

 Perhaps the accounting industry does need to be reviewed, but I would hope that in that review, someone takes into account that "rules and regulations" are only good if they are implemented and followed.

Since I still haven't done my homework, I have to ask...did this happen to AIG because of faulty accounting records?  Or was it just a backlash of the falling market?

[Krimpet]

 Here is a great article that just popped up on Yahoo! that explains it in a nutshell as to how this entire mess happened.

http://finance.yahoo.com/banking-budget ... ing-Stupid

ETA - what really ticks me off are the CEO's that run the companies into the ground and walk away with millions of dollars. Now if it was all in stock options I'm not feeling to sorry for them about now!