The Sky is Falling

Yesterday was a bad day if you follow the financial market. The Dow dropped 500 points or about 5% in one day with the news of Lehman Brothers collapse, and Meryll Lynch being sold to Bank of America. I mean I never thought that this would happen in my lifetime. Lehman is an institution that has been around for over 150 years. That's a long time. On the same day, AIG (American International Group) comes out looking for money because they don't have enough, and today the Fed decided to bail them out in the tune of $85 Billion dollars. Thats just crazy!!!

My opinion is that it's all about GREED for these large companies. They just leveraged themselves too much, and gambled that they will come up ahead on this subprime realestate debacle. I wonder how long this negative news will continue. I know that in the long run, your money is better off in the stock market, but the way things are going, you kinda start to wonder where the hell should you put your money that will be safe. And get this, WAMU is another bank that got a "Junk" rating. WAMU? ....who's next, B of A. I am thinking B of A must be crazy. They just acquired the ailing mortgage company Country Wide, and now they are in the process of buying Merryl Lynch. Either they got money, or? Just imagine, the image of that BULL with Meryll for stability will no longer exist. The company Meryl Lynch which symbolized the elite investors advisors will now be called something in the line of B of A advisors......tragic.

They say that banks are FDIC insured of up to $100K of your cash money. But, I heard somewhere that the reserve has a maximum amount aside fo $50 billion dollars. But, get this, with all these banks in trouble...they are actually at $1 trillion dollar at risk. Now, you do the math. Is your money really safe in the bank?

Hopefully, this week we will get some positive news. I saw a commercial of Mcdonalds offering "Fancy" Coffee now. Made me think that Micky "D"s might be a good stock to buy :)