AIG: Mortgage crisis worsening

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

Good morning again. Investors do not like the news from Europe and from the central banks -- BNP Paribas, the big French bank, froze $2.2 billion in funds damaged by sub-prime investments, and central banks in Europe and Washington rushed to add liquidity to the banking system.

--The Blue Chips fell 200 points in the first 10 minutes of trading.

--Not helping: AIG, the big insurance company, put out a gloomy report on mortgage defaults: ‘Residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime, American International Group said on Thursday.’

--Fed Funds futures trading indicate traders are now certain -- certain -- that the Fed will cut interest rates in September.

Comments? Insights?