My AIG Temptation

A few months ago, I attended an investment seminar sponsored by an AIG affiliate. That was a few weeks after Bear Stearns hit the headline for their financial troubles.

During the forum I asked the financial consultant who was facilitating the discussion how would the sub prime problem affect the financial status of AIG. In a way I was asking them how strong is the financial standing of their company. The explanation of course were the canned type, where they would narrate where they invested the funds, and how safe it is to invest with them since they are dealing with the top 500 corporation and their BRIC 40.

And even when I mentioned the financial woes of City Group, they insisted that they are not vulnerable. They even ventured into the assumption that granting any problem would occur in the near future, the federal government of America will never allow one of its flagship companies to fall.

I never invested though, not because they never convinced me with their motivational speeches, but because I don't have the money to invest. My gut feel then was whispering that they are agressive in inviting investors because they need new infusions.

With todays woes that befell Lehman and of course AIG, the thought of what if I had the money then, I would perhaps be one of those whose blood pressure will be shooting up. And the lesson learned. The safest way to avoid financial losses is to never have any financial savings at all.