How far will the government go to help AIG?
AIG is a huge, expansive institution providing service for 74 million customers in more 130 countries. Given its international presence, and its hand in annuities and life insurance, the government is not likely to let AIG fail.
Is Berkshire Hathaway the 2nd big issue this week?
Yes, Warren Buffett's famous shareholder letter was released this weekend, reflecting the worst earnings in the company's history. When Warren Buffett says "the economy will be in shambles throughout 2009" people panic. But just because the economy will be in bad shape doesn't mean the stock market will continue to do poorly, as the market has a tendency to overreact.
These are scary times and the news is getting worse. We were expecting this storm, but it has certainly yet to pass. It is important to remember that the stock market will get better before the economy gets better. Investors are smart - knowing how important it is to be able to stomach even the toughest of downturns in order to do well in the long run.
One thing everyone should know is that even the brightest, most experienced and well respected investors continue to say that this is a good time to invest.