I know this is a personal type blog of what goes on in my life, but sometimes I just got to write about whats going on out there.
Do you follow the market? I used to a little and I still do some especially in the times we are in now. Usually I start the morning between 6 and 7 am with a cup of coffee and CNN Headline News. Somehow the news slipped past me this morning as I was getting things ready for my commute to town. I later caught the news at around 9:30 or so and all I saw was BREAKING NEWS this and ALERT that.
It was all about the financials. They seem to be in trouble yet again! Everyone is wondering if their money is safe. Erin Burnett seemed like she was on every 30 seconds mentioning something about the FDIC and how much they insure people. This I’m sure was only to somehow appease people so they do not run out and grab all their money out of the banks. If they did it would probably only worsen things, but how do you feel about your money in the bank? Do you feel it might be somewhat safer in mattress?
This from Business Week:
The financial hurricane that whipped through Wall Street Monday suddenly made the Street, long a source of fabulous wealth, look uncertain and scary. In New York, where a half-million people work in finance, nearly everyone was shaken, from hedge fund billionaires to secretaries from Queens.
Lehman, the No.4 investment bank in the U.S., filed for Chapter 11 bankruptcy reorganization Monday, the same day Merrill Lynch was bought by Bank of America Corp. in a snap deal for roughly $50 billion. Meanwhile, American International Group Inc., the world’s largest insurer, and Washington Mutual Inc., the nation’s largest thrift bank, were rumored to be close to ruin.
“How did this mess get so big?” said Levy, who worked at Lehman Brothers Holding Inc. for seven years before leaving in 2005.
As groups of grim-faced employees walked into Lehman’s million-square-foot headquarters on Seventh Avenue — many of the men wearing Lehman-green ties and the women in green shirts — the consensus in finance was that this would just be one more in a succession of grim days following the mortgage bust.
“It’s like a bad flu,” said Steve Schlussler, a director at CapitalSource, a small financial firm near Lehman. “You have to get violently ill to get better.”
“The Fed can’t bail everyone out,” he said.
Stocks tumbled, but not as sharply as feared. Analysts had sent notes to clients Sunday night reminding them of the magnitude of losses that could occur before trading was halted on the New York Stock Exchange. The first of such “circuit breakers” kicks in when the Dow Jones industrial average loses 1,300 points before 2 p.m. By midday Monday, the Dow had lost 283.67, falling 2.5 percent to 11,138.
I heard that Citibank is doing so bad, that they are not allowing the employees to use color ink in their printers.
Have we now come to that !?! Is this the bottom?