S&P Lowers AIG Credit Rating

S&P lowers their ratings on AIG and keeps them on watch negative. S&P lowered their long term counterparty rating to an A-2. Per CNBC.

Larry Fucking Kudlow just tried to spin it positively... I shit you not.

Hey Larry Kudlow... FUCK YOU!

This will increase the possibility of, and hasten the speed of an AIG bankruptcy.

They have a balance sheet of over a trillion dollars.

UPDATE: Maria just chirped in saying that over-regulation is exacerbating this problem. Note to Maria and all idiots everywhere.... had these firms been better regulated, perhaps they all wouldn't be over-leveraged. Listening to her and Larry love on each other because they agreed about over-regulation was just too much... CLICK!

They Might Be Giants, "Don't Let's Start"

The RO Report, "Monster MOCs" Edition

This is a very funny job. At 3:30, the market took traders down in my office. We were all short, naturally, into a legendary squeeze. Trader Z lost over $30 grand in that 5 minutes. Even me, your conservatively trading blogger, managed to lose a few thousand.

The bloodshed was real and widespread. People were freaked.

Who knew that only 30 minutes later, all of that money would be made back, with many thousands more tacked on? After a decade of trading, you see a lot... but I can tell you, that never have I seen stocks gap down like they did at today's close.

Check any REIT.

Anyway, I may write a post detailing the last 40 minutes of my day if I have time later this evening. I hope I do, if only so I can remember. Let me just say that at 3:30 I had lost over half my month and was feeling pretty sick about it. But by 4:15, I had tripled my month. Go figure.

Out of 22 traders today, 15 were positive, or 68%. I was #7 of 22. 12 traders finished over $1,000 gross, 10 over $5,000 gross. I had my best day of the year, by a long shot.

Meanwhile, if you're a little freaked out by the 500 point down move in the Dow, don't be. It could have been far, far worse. Indeed, the worst is still yet to come. However, ultimately, this is what needs to happen for the market to have solid footing yet again.

Here's the top 5:

1. Trader F, $95,989 on 228k shares traded.
2. Trader B, $70,782 on 1.2 million shares traded.
3. Trader D, $44,421 on 474k shares traded.
4. Trader E, $36,121 on 224k shares traded.
5. Trader P, $33,319 on 137k shares traded.

And the bottom:

1. Trader H, -$8,290 on 4,800 shares traded.
2. Trader Z, -$5,846 on 308k shares traded.
3. Trader T, -$1,894 on 9,000 shares traded.
4. Trader 1, -$1,405 on 7,200 shares traded.
5. Trader I, -$833 on 8,000 shares traded.

Art Cashin's Comments, September 15th 2008

In short, below is what Art had to say.

"This is unique. This is another fine mess they've gotten us into..."

Watch the bounce, see what kind of shelf life it has, see what kind of volume...

This rally, if it turns and it's real, should look like a cattle stampede in an old Western movie. They should be chasing price with volume."

Let me tell you in case you're not watching... this is no old Western movie. If it is, all the cowboys are gay.

Anyway, another impassioned post by Denninger to "Wake Up America!" Indeed.

AIG

The big cat feeling huge pain.

"The Futures Are Off Their Session Lows"

I like Carl, but how about first saying that they're down 52 points, off a low of 55.

Your financial media at its finest.

Where Will The Dow Close Tomorrow?

(FINAL UPDATE AND BUMP: This contest is only open until 12pm Monday, Sept 15th.)

The winner receives a placement in my blog headline for a week. You know... up there where it says "Sex."

Also, if you're a fellow stock blogger, you'll get top linking placement (i.e. over "the Fly" for the next week as well, plus a daily pump). That should yield you at least 6 extra page views next week.

The closest guess wins.

NOTE: CNBC is doing some special reporting right now... they're currently talking about the $40 million that AIG is trying to raise... they're talking with Buffet. Leisman, Faber, Gasparino, Ratigan.... they're all there on a Sunday night.

NOTE II: They're showing film of employees taking their shit from Lehman Brothers' Headquarters.

NOTE III: The title of CNBC's Special Report is, "Is Your Money Safe?" Of course, if they're asking this question, you know the answer is, "no."

Steve Liesman, "You don't know that anyone tomorrow morning has a huge counter-party risk hole with Lehman... how can you make a single trade not knowing who has what exposure?" NOBODY KNOWS ANYTHING! NO ONE LIGHTENED THEIR EXPOSURE TO LEHMAN.

Memories....

Also, this is good for a laugh now...



UPDATE: AIG trading down 40% pre-market, oil below $100, and the futures are down close to 50 points, or 4%.