AIG And The Housing Bubble

American International Group has finally shown up in the housing bubble. In the current, tangled financial system, it should probably not be a surprise. The S&P said on Tuesday,"the ratings on some 150 tax-exempt bond issues might have to be cut... the total value of those issues,'You could be looking at $1.5 billion.'Most of the bonds that could lose their top "AAA" credit rating were housing bonds."

Moody's has this to add. "Moody's Investors Service has lowered its long-term senior debt ratings on American International Group, Inc. and has placed the ratings on review for possible further downgrade. The debt and insurance financial strength ratings of supported entities including the group's supported life insurance and mortgage insurance subsidiaries have also been lowered to Aa1 from Aaa, and are also on review for further possible downgrade."