GOOD DAY FOR: Shorting Circuit, after electronics retailer Circuit City filed for bankruptcy. The chain said last week it would close 155 stores, or a fifth of its locations. Circuit City, along with being hit by the credit crunch, has also been losing market share to larger competitors Best Buy and Walmart. Its stock closed at 25 cents a share last week. (Bloomberg)
BAD DAY FOR: Risky business, after the U.S. government increased the amount of its bailout of insurer AIG to $150 billion, from $85 billion. The new deal reduces the loan portion to $60 billion and adds the purchase of $40 billion of preferred shares and $52.5 billion of mortgage-backed securities. AIG also reported a record $24.5 billion quarterly loss. “AIG keeps getting hit square between the eyes by the housing-finance meltdown,” said Morningstar analyst Bill Bergman. “Risk controls at the company were clearly inadequate.” (Bloomberg)
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- Why Mitt Romney is perfectly poised for a comeback in 2016
- Why is the West so afraid of Islam?
- Here's the schedule very successful people follow every day
- 8 secrets to steal from power networkers
- What would a U.S.-Russia war look like?
- How to make classic pulled pork
- The Nazi smart bomb that inspired China's most dangerous weapon
- Why GOP reformers are bound to fail
- The best places to find love — and lust — according to science
- Don't vote for Andrew Cuomo
Subscribe to the Week