Man, another insane day in stock market. After news broke this morning that the Federal Government will allow a bridge loan in the tune of $85 Billion dollars to bail out the troubled Insurance giant AIG (American International Group).
You would think that that move would have somewhat calm the market, but instead it drops another 400 points. So, if you had money in the market, just this week alone, you would have lost about 8% of your money.....In less than a week! The worst part is that the weeks not even over yet.
Anyways, this deal will allow the Fed to own 80% of AIG, and AIG agrees to pay back the Feb within 24 months. I am sure it will be for a pretty high interest rate. At least the Fed is making money on this deal. Maybe they will use it for another "Stimulus Check" to give us, the average Joe tax payer. (I can only hope)
It's amazing what has been happening. I red somewhere that this is comparable to the colapse of the financial market during the great depression era. But, the big difference is that the Federal Government is actually doing something to try and prevent an all out cathastrophy. I mean, they have their hands on Fredie Mac, and Fannie Mae...now its AIG. Kinda scary.
I wonder what tomorrow brings to the market? I heard that WAMU is next on the chopping block of banks that are in need of help....what about Morgan Stanley, or Goldman Sachs? Some bank like Wells Fargo will probably buy them sooner than later.
But, like the investors of the great depression, if you stay the course (Assuming, you have at least 10 years in the market or more), then history shows that your money will be ok. I believe that, and I believe in the market, and I still believe in this free market system. We just need to hold on tight.
Let's cross our fingers for better news tomorrow.
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3 comments:
listen Brosef. I applaud your very personal efforts in blogging. But I want to make sure there are words that you spell, absolutely correctly... every single time you use them.
Read, in the past tense, is still read.
Just watching your back.
Oh, and collapse has two 'l's.
You're a damn good Financial Planner, but your spelling bank... Losing Stock.
Seriously, keep up the thoughts. I'll try to do the same.
Thanks for the correction. You know how it goes...you just end up typing without thinking about spelling or grammatical errors. But, thanks for the comment. You do the same with the blogs.
Yes. Now Wamu.
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