AIG: Explaining a $62 Billion Dollar Loss.

Yeah, we're probably going to need that jersey back.

Yeah, we're probably going to need that jersey back.

Once upon a time, there was an insurance company called AIG.  They used to be big.  Really big.  Like $100 billion dollars-a-year big.  Investors liked them because they were a financial rock worth betting on because they consistently made money.

Today they just reported that they lost 61.7 billion dollars in one quarter.

That’s $7,500 a second.

OK, I won’t lie, I got that figure from an article.  There’s no way I could calculate that math by myself.  Even at restaurants, I can’t do the tip.  The waitress just stares at me while I pretend I’m performing this complex calculation in my head.  Even though, for most people, it should be simple to calculate 20% of a bill.   Sometimes, I even say, “oh wait I forgot to carry over the one,” so I can have more time to do the calculation, but really?

I wasn’t carrying anything.

Maybe the guys at AIG are just as bad at math.  They have to be.  How you can lose that much money is beyond me.  If anyone of us lost 0.00000001% of that, we’d all be fired.  Apparently, the US government disagrees with me.  They are keeping AIG alive by pumping in another round of bailout money.  They don’t want the insurance company to fail because apparently, it’s too vital to the financial fabric of the economy.

I don’t get it.  Too vital?  They’re losing $7500 a second.  That means, in the time you took to read this, they lost 384 billion dollars.

See?  Told you math’s not my thing.

*Also, I inflated my tipping percentage to impress you.