Last Week!
So last week definitely made BIG news!!!!
Lehman Brothers declared bankruptcy and Merrill Lynch was bought out by Bank of America. The stock market dropped 500 points - the worst tumble since 9/11. All this - and I am still on Monday. Stocks went tumbling globally. It's amazing how far and reaching the ripple effects can be and we, in the States are so close to the epicenter.
The Feds were quick to calm and announced the bail out of AIG. This is by the way the mother of all bail outs in financial history.
On Thursday, we saw the biggest one day gain in the stock market in 6 years. The markets were pleased with the Feds coming in. But the speculation has not ended. Which bank is next? Goldman Sachs? Morgan Stanley? Our free checking account friendly neighbor - Wamu? I love Wamu!!!! How could that be next? And I can't believe that all this started with something as small as Mr and Mrs America buying a house that they simply could not afford.
Anyhow, I believe that we have lived and survived many a crisis and we'll get by this one too. The cost of panic is high and I am still trying to maintain perspective. I am hopeful that the dust will settle eventually.
posted by Sumi Shrishrimal at
11:11 PM
1 Comments:
ya sumi it seems to be a big financial crisis, as u say man kind by and large commits same kind of mistakes over and over in a different way. Greed and fear are two factors which brings about financial disaster. I do not understand any financial play, I only understand that we have to balance expenditure with growth and earnings and cannot live on huge borrowings thinking once i make big I will pay off. It may happen it may not happen . Once we take realistic view and borrow money and spend it for business growth then the returns are good. Anways when big bubbles are formed in any economy it has to burst some day. Memories are short and we tend to forget once the crisis is over. I am sure this will also pass . keep writing love shobha
September 23, 2008 at 8:01 PM
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