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Wow....two hurricanes at once!

Alex Ferguson writes:

Wow. Two hurricanes, one weekend.

The first was the force of God, moving through the Texas and up through the US, causing widespread damage. Parts of Galveston, an island off the coast of Texas and reportedly one of the jewels in the crown on the state, are underwater. Billions of insured damages are expected to be reported by insurers and reinsurers alike.

The second was the force of man, bringing down Wall Street and London in one fell swoop. With one breath investment bank Lehman Brothers became no more, with the Federal Reserve Bank refusing to be a Florida Catastrophe Fund to this self-caused catastrophe. Thousands of jobs were lost all over the world. Merrill Lynch -which could have suffered the same fate- was sold to Bank of America for $50bn.

And speaking of the force of man, AIG- the world's biggest insurer, also seems to be teetering on the brink of collapse. In boxing terms, the behemoth had $18bn worth of subprime hits, and seems to just need one more knockout punch (credit agencies or the US Federal Reserve - your choice!!) for a catastrophe.

The price of AIG stock - at around $2 a share at the time of writing - is virtually worthless. The world is waiting to hear AIG's plans - if any - to sell its non-core subsidiaries. We've heard nothing....have you?

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