Monday, September 22, 2008

Markets in Turmoil

Man, what a crazy week its been.

Beginning with the liquidity crisis at AIG, the markets went on a roller coaster ride of epic proportions. Hourly, the potential for AIG's demise created more fear in the markets. Finally, when AIG had fallen below $2 a share, the government reacted and initiated one of the largest public bailout deals.

However, the days after were not much rosier, with Lehman Brothers filing for bankruptcy, Merill Lynch merging with Bank of America, and both Goldman Sachs and Morgan Stanley filing for bank holding company status.

Tonight, all of the world awaits a decision by the US Congress to enact a bill that will not only save the US financial markets, but the worlds.

Melodramatic as that last statement may be, it is really the ultimate effect of globalization. Nothing happens in the US that doesn't affect the world... and vice versa.

1 comment:

Les@SpillingBuckets said...

How do you feel about the proposed $700B bailout plan?

Did you watch the Presidential address tonight?

I am trying to make sense of all this and want as many perspectives as I can get - and you are a finance guy so I thought you would have an educated opinion.