Lost in all the news was the shutdown of Washington Mutual -the biggest bank failure in US history with $300 billion in assets. The 2nd largest failure was Continental Illinois in 1984 with assets of $40 billion, caused by, guess what -a housing crisis! Also Warren Buffet bought into Goldman Sachs with a $5 billion investment, while Mitsubishi bought 20% of Morgan Stanley. The ailing (or is it 'failing') auto industry also got some handouts from the government this week.
(click to enlarge)Next week we get the final details and a vote on the 'plan', along with the market reaction. It's anyone's guess at this point as to how the market will react. The market will also react to the monthly jobs number on Friday -we have lost jobs 8 months in a row so far. Until this market settles down, be very careful! Also, the short selling ban should be lifted next Thursday. Interesting info -the last time short selling was banned was in 1929.
WaMu becomes biggest bank to fail in US history
Washington Mutual Bond Holders Wiped Out
What $700B won't buy: a quick fix for the economy
The Deal's Getting Done, But Will It Work?
China banks told to halt lending to US banks-SCMP
Morgan Stanley to sell Mitsubishi 20 percent stake
Citigroup, Wells Fargo bid for Wachovia-NY Times
Buffett to Invest $5 Billion in Goldman
Government Approves $25B Low Cost Loan Package for Auto Industry
US Mint suspends sale of 24-karat gold coins
New home sales fall to 17-year low
Lennar calls for government help for U.S. builders
Bank run prompts $500M infusion in Hong Kong
European Regulators Move Swiftly to Rescue Two Lenders
Bradford & Bingley Nationalised Another UK Bank Wiped Out by Tulip Backed Securities
Credit crunch banker leaps to his death in front of express train
Financial crisis: Fortis to become latest victim of bank crisis
On the lighter side...
Toilet-paper researchers create 3-ply tissue (pic)
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.
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