Why couldn't that AIG stock be Microsoft or Apple, and the plummet was because of some scandal? I'd buy that in a heartbeat at $4!
The big thing is that people don't need to panic. This shake-up of the financial sector was overdue IMHO and in the end things will be more stable. Our portfolio has lost around 10% of it's value so far this year. But over the course of time it will recover and then some.