Not a pretty picture

American International/AIG just traded for $34.63, effectively matching its ~10 year low ($34.60) that occurred during the Long Term Capital Management problems. (September 1998.)

[click on chart to enlarge]

Although the shares could bounce off the ~$33-35 price level, such a bounce could prove ephemeral as selling pressure this resolute indicates Wall Street fears AIG could be another Bear Stearns/BSC. All in all, not good, not good at all.

Of course, we all would be remiss if we fail to acknowledge that Wall Street gets things wrong quite often -- which helps create opportunities for investors of all stripes.

Full Disclosure: Not long American International/AIG
-- David M Gordon / The Deipnosophist