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Sep 17 2008

Suze Orman should be ashamed of herself

Published by at 8:05 am under Thoughts

Yesterday Suze Orman appeared on CNBC at least once during the day expressing the opinion that the Fed absolutely must bailout AIG. Her reasoning was that the company which insures so many people and businesses all over the world. Basically, she was implying that policy-holders were at risk.

Someone with such a large profile must be more responsible.

As the state insurance regulators have been saying repeatedly this morning, and as AIG stated yesterday (and I’m almost positive was stated elsewhere yesterday), policyholders were never at risk. By implying otherwise (as she did again last night on Larry King), Suze did something akin to setting up a bank run.

In times like this, the people like Suze who have a loud voice have to be sure they get it right. The flood of people to the AIG offices in Asia is an indication of what can happen when misinformation is disseminated.

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