AIG's loss and record oil sour mood on Wall St

“Also, we are seeing the spiral playing out of declining home prices making financials' underlying collateral worth less. At best, financials will have to keep issuing new capital, which dilutes existing shares, so down the shares go.”

Stocks fell on Friday as the price of oil set another record and concerns about the financial sector flared up again after American International Group Inc reported a massive loss. via Earth Times