"AIG Is a Financially Sound Company." -New York Governor Patterson

Somebody has to say it. Not only is Governor Patterson legally blind, he's financially blind.

Right now no one knows if AG is financially sound, not even company officials.

The New York State Department of Insurance has allowed AIG to access $20 billion of capital in its subsidiaries to free up liquidity. This smells. The subs had $20 billion of capital just laying around? Oh yeah.

As Eric Salzman points out AIG is a "derivative fun-house. Every turn is another adventure. Marty Sullivan, who ran the place until last spring, seems like he pretty much let anybody do whatever they wanted......and they did! I bet you there isn't one guy at AIG who could give you a complete picture of the company if his life depended on it."

Salzman goes on, "Jim Cramer says that he can't figure out AIG! If you asked Cramer if he could build an atomic bomb on the set of CNBC, odds are he would tell you he could. If Cramer admits he can't figure them out, that's pretty serious!"

And, forgive me, the blind Governor has it all down and knows it sound? Not likely. I'm not riding if the Governor is driving.

-Robert Wenzel