Well, yesterday was a great day for those who do not want the bailout to happen. Of course, the dow reacted just like a bunch of lemmings going off a cliff. Just because wall street will not get (at least so far) their money, they went into a selling frenzy and knocked down a lot of good stocks in the process.
Most if not all mutual funds, pension funds, and other type of funds started unloading their financial holdings in banks and other credit companies to get cash to put somewhere else. Seems those managers do not want to be the ones left holding the bag on companies with tons of bad paper and losses.
So here are some links that will try to help you understand the mess we are in and what the bailout means (it will happen, no one knows just what it will entail). Also some history of the last government bailout of the Savings and Loan companies back in the 1980′s. Remember that mess, as one day went to my bank at the local Kroger store and poof! They were closed, just a sign that said “We are Closed”. Even the atm machine did not work. I and my wife at the time played hell trying to find cash to pay bills, etc. That is the main worry right now, will our bank, your bank, be in business today, tomorrow or next week? Will I and you be able to access our money?
Credit Default Swaps: The Next Crisis? – TIME
FDIC: The S&L Crisis: A Chrono-Bibliography
Special Report: The Savings And Loan Crisis – TIME
Wall Street In Crisis – WSJ.com
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