China Cuts Its Growth Rate to 7.5%

I’m happy to report that I’m back at the helm and I’ve fully recovered from whatever it was. Thanks for the get-well emails.

The stock market looks like it’s going to open lower this morning due to poor economic news from Europe. Also, Wen Jiabao, the Premier of China, said that China’s economy will grow by 7.5% this year. That kind of growth sounds great to us but it’s actually an eight-year low.

There’s some kinda good news from American International Group ($AIG). AIG said it’s going to sell a big chunk of holdings in AIA Group Ltd., the Asian life insurance company, in order to pack back the U.S. Treasury.

AIG currently owns about one-third of AIA and they’re planning to sell a bit less than half of their position. This deal will send about $8 billion the government’s way. Not including this deal, AIG still owes the government about $50 billion.

The U.S. Treasury’s break-even point on AIG is $29 per share and the stock is just above that right now. I would have to think that the Obama Administration would enjoy privatizing AIG just before the election.

Posted by on March 5th, 2012 at 9:26 am


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