An analyst report out Tuesday from Bank of America on American International Groupreads "We are dropping coverage of AIG."
That's not a surprise. The surprise is that BofA has a "Buy" on AIG with a price target of $30.
Going from A BUY to NO COVERAGE in a day is but one sign that we live in crazy times. At least during the dotcom disaster, I had the Pets.com sock puppet to make me laugh. Now, the best I can do is hunt down classifieds on Craigslist selling Lehman Bros. for $1.
The BofA report on AIG Tuesday said analysts were dropping coverage because "The situation at this stage is binary and dependent more on political will than analyzable facts." Binary? Like twin stars? Computer code? I think it means the future is "all or nothing". AIG could survive. It could die. BofA doesn't know. "While we see the value of the insurance operations being well in excess of the parent liabilities," the report says, "solving the liquidity issues have now entered the political realm...This recommendation should not be relied on going forward."