aig falls 50pcent after market on media report, page-10

i think it needs to be pointed out AIG can seek Chapter 11 bankruptcy protection which is a often used method by US companies who have short term liquidity issues and many US Airlines especially United (UAL) implemented a Chapter 11 Bankruptcy protection after 9/11 it is not an unusual step or legal instrument although i believe AIG will gain funding to allow it to continue trading and it will not fail.
Bloomberg were the ones who wrongly reported the FED would put AIG into conservatorship and cheap headlines or breaking news can be very misleading and dangerous and suggest people look behind any reports before acting or reacting on any stock.
Reckless comments on forums,blogs and assorted chat sites do not help although in some way it is understandable given the breadth of economic failures in wall Street but people should look at this in context this is not as bad as 1987 or the tech meltdown in 2000/01 and is in the main confined to the US and a certain number of rogue companies.