My goodness! First the collapse last spring of investment bank Bear Stearns and the ensuing government-backed bailout. Then the feds step in, take over and bail out mortgage giants Freddie Mac and Fannie Mae as a necessary move to prevent a massive collapse of the U.S. financial system…
Then we wake up Monday morning and discover that two more investment bank behemoths are gone. Lehman Brothers files chapter 11 bankruptcy after failing to find a suitor. And unlike JPMorganChase scooping up the remains of Stearns, there’s big doubt on the street that Lehman will fair as lucky.
But the big shocker for me? The mighty Merrill Lynch is GONE!!! — Bailed out by Bank OF America — will they now trump Citibank? Or is this just more of a recipe for disaster?
And along with the banks, we also have the impending doom of insurance giant AIG.
What to do, what to do?
DOOM AND GLOOM!!!
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