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Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Thursday, September 25, 2008

Bailout Up In Air; Rumors Deal Is Dead

CNBC news on bailout Accord Up In Air; Some Claim Deal Is Dead
I'm thinking tomorrow may be a big down day, especially going into the weekend. I wouldn't be surprised we go down hard tomorrow, and a lesser plan passes on the weekend.

A bit late, but the Dallas Federal Reserve board member Richard Fisher broke rank and spoke out against the bailout, stating "Bank Rescue Plan Would Worsen Fiscal Chasm'".

AIG has taken 45 Billion of it's total credit line of 85 Billion already. In total, institutions have borrowed from the fed over 267 billion dollars, up from last week total of 121 billion. Needless to say, the proposed 700 billion dollar bail-out isn't the whole story. Companies are using as collateral stocks, "undervalued" mortgages, and other toilet paper as collateral. I'm guessing the insiders had the scoop on the where the bailout was going and prepared for the next two weeks by loading up in cash.

Washington Mutual is no-more, as it has been now seized by the FDIC. I previously wrote that WaMu was next, after AIG/Lehman. The government will flip their assets over to JPMorgan, along with a piece of the 700 bailout I'm sure.

I'll try to add a humor post, reading my blog may make some people jump out a window. I don't look at what I write here as depressing, but informing. In any event, humor video today from the daily show.

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