Profit from AIG's demise

Finally, under tremendous political pressure the insurance giant AIG is willing to tell us where has the bailout money gone by releasing a long list of counterparties benefiting from the taxpayer's money. The top three beneficial parties are:

i) Goldman Sachs US$12.9 billion

ii) Societe Generale US$11.9 billion

iii) Deutsche Bank US$11.8 billion

US$12.9 billion is sure NOT a small number as the current market capitalization of Goldman Sachs is only US$49.859 billion. That means Americans citizens has "donated" more than one third of Goldman Sachs, not to mention the US$20 billion Goldman Sachs has already received in the previous US$700 billion rescue package. No wonder the Treasury Department chose to rescue AIG because if it hadn't done so, our Master of the Universe Goldman Sachs will be the next to fall.

So what to do now? We should buy Goldman Sachs. When banks like HSBC are struggling to keep itself afloat by issuing stocks, Goldman Sachs through the AIG's rescue benefits enormously. And that has already reflected in the price, with Goldman testing the US$100 apiece.