The US Government had announced that it will set a $85 billion dollars plan to save the troubled world’s number one Insurance giant, American International Group, AIG.
This news had gives investors not only in US, but all over the world some relief as some financial aid is going on. This is an unprecedented moves by US Central Bank in private business company. It is still unknown why is there a difference between Lehman Brothers Inc and AIG. Why AIG? Well, it could be due to its size and the impact it is going to make if it winds up.
Anyway, Asian Markets reacted positively after this very good news and had rebounded significantly from early losses. The esposides that have been taking place for the past weeks have been very dramatic and this shows how volatile and uncertain the global economy can be indirectly affected by US financial news.
The above are of personal opinion and not at all an inducement to trade.