America's return to basic industry from structured finance
Mish Moved to MishTalk.Com Click to Visit.
Inquiring minds are noting AIG To Be Replaced By Kraft In Dow Industrials.
Kraft Foods Inc. (KFT) will replace American International Group Inc. (AIG) in the Dow Jones Industrial Average effective Monday, a further sign of the problems afflicting the insurance giant.Note:
The composition of the Dow industrials was last changed in February, when Bank of America Corp. (BAC) and Chevron Corp. (CVX) replaced former Kraft parent Altria Group Inc. (MO) and Honeywell International Inc. (HON).
Robert Thomson, managing editor of The Wall Street Journal and overseer of the Dow's makeup, said that not adding a financial company to replace AIG is prudent at this time "because of the extremely unsettled conditions." He added Kraft was added because the index includes no food companies.
AIG shares have tumbled 90% this month as investors got increasingly concerned about the New York company's ability to raise capital. That crisis of confidence, coupled with credit-rating downgrades earlier this week, effectively forced the government to step in after private entities refused to help in the firm's rescue without risk guarantees.
AIG joined the Dow industrials on April 1, 2004.
The above link was pulled just as I finished this post. There are other sources citing similar stories.
Kraft Weekly Chart
click on chart for sharper image
Full Circle
Kraft was kicked out, AIG was thrown in.
AIG is tossed out, and Kraft is back in.
It's a beautiful system.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
