DigiDiaries

Announcing... history in the making

Changing focus to the Finance world today since we are witnessing the largest mortgage shakeout in global history. Every economics, finance and business major in the foreseeable future will be reading about this in every newly printed textbook. From the fall of Bear Stearns and subsequent take over by JP Morgan, then the Freddie and Fannie bail out, followed by Bank of America buying Merril Lynch and now the bankruptcy of Lehman Brothers, the insolvency of AIG. Wow that sentence is making me spin. Is Washington Mutual next? Wachovia? Thoughts? There are 9000 banks in the America, how many will be left in the next 3 to 5 years? There are talks of runs on banks which means people get worried and pull their money out, creating a larger liquidity crisis. I hope we don't see that so don't panic people. The FDIC insures up to $100,000 of your bank funds so if you have big accounts, it is best to diversify at this point.

Check out the stock market plunges of the some of our largest financial institutions: 

Wonder how we even got here? Here is a quick overview of the chain of events that started it all:

Posted at 02:51PM Sep 15, 2008 by Joyce Solano in Blogging  |  Comments[0]