Highlights of events:
- Barclay's walks away from buying Lehman Brothers
Wall Street prepares for Lehman to go bankrupt.
Stocks will have a rocky week!
- AIG asks government for 40 Billion dollar "LOAN"
NOTE: Generally speaking, on Insurance companies, my blog will report facts and I'll hold my tongue on spin.
- Estimated 24 billion to bail out Washington Mutual by Government.
WaMu is still aflot, but rumblings continue
- Federal Government to accept "stock" as collateral for the discount window.
Absolutely over-the-top unprecedented in Fed's 95 year history. I guess the feds will now accept losses for private companies fraud mortgages collapsing and the stock market. Maybe next Government can take merchandise inventory to help retailers as collateral. I assume this was done to help AIG, Lehman, and WaMu.
- Bank of America to buy Merrill Lynch, for about 29 dollars a share, 70% higher than closing price on Friday.
- UBS to take additional 5 Billion dollar write down.
My Spin, Does anyone believe thats the last write down for UBS?
If the market is "smart" it will see taking stock as collateral by the Fed as pure desperation and not welcome it. On the other hand, now the government will have a vested interest in the market going up, so maybe they can change the rules, perhaps ban stocks lowering their price.
I dare not speculate what this week holds. If you want speculation, watch this video on today's events. But hang on, it will be a wild wild wild ride. Do NOT believe the bottom is in no matter what! All moves are desperation moves, not something to rejoice over.