Sep 23 2008
Bailout
As Bush waits to get an “OKAY” on $700 billion bill (to buy out bad mortgage debt) he’s sent to Congress, the Dow Jones continues to drop with 370 points down on Monday. Investors seem to be running scared and others are just “waiting to see” how this financial crisis out country is in plays out. Meanwhile, at least, the smaller investors such as those with 401-K retirements are sweating bullets as they watch their retirement plans spiral.
Canada has been affected and it shows in their market. Toronto’s S&P/TSX composite index showed it down 274 points Monday which was a turn-around from Fridays increase of 848 points. Their dollar is at 96.77 US (up 1.53 cents).
China and Japan, on the other hand, are both up with China’s stock market climbing up 8 percent and Japan’s gaining more than 1 percent in their early trading.
Just recently, the Federal Bank granted requests by Morgan Stanly and Goldman Sachs to change their status to bank holding companies. This means these establishments will now be considered just regular retail banks. Another crisis occurred for Ameribank, becoming the 12th regional bank to go insolvent on Friday. It’s business largely relied on the construction industry which has greatly dropped with the housing market.
It feels like we all need to stay tuned for the next episode as we all try to go about our day to day schedules. We have to keep putting one step in front of the other. What else is there to do. As individuals, we feel helpless. Yet, “helpless” is not a good place to be mentally or emotionally. It is important that we all keep our mental attitude in control of our lives. If you can make changes in order to prepare yourself if finances continue to spiral down, all the better as it put’s you in “control” of parts of your life. But, I implore you to not be “desperate” about anything as you will only make mistakes in your choices. We all must remain calm and think smart.
