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The big financial news today was that the feds sold off the AIG stock they acquired during the bailout. Kai Risdall on Marketplace reported that as a result, AIG stock rose 5%. If there's a big, motivated seller, shouldn't that cause the price to fall, not rise?
Or is it just that the selloff signals that AIG has recovered, and doesn't need the government's help any more? Should that be enough of a surprise to investors that it causes a sudden price change like this?
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Why did AIG stock rise?
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Posted 2012-December-11, 19:54
barmar, on 2012-December-11, 18:38, said:
The big financial news today was that the feds sold off the AIG stock they acquired during the bailout. Kai Risdall on Marketplace reported that as a result, AIG stock rose 5%. If there's a big, motivated seller, shouldn't that cause the price to fall, not rise?
Or is it just that the selloff signals that AIG has recovered, and doesn't need the government's help any more? Should that be enough of a surprise to investors that it causes a sudden price change like this?
Or is it just that the selloff signals that AIG has recovered, and doesn't need the government's help any more? Should that be enough of a surprise to investors that it causes a sudden price change like this?
who knows, your point sounds plausible.
In any event the too big to fail issue is not solved...where is Winston?
Maybe we should think about nationalization of the banks and stuff like this?
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